James Bessell Sr., of Shirley, sentenced in $1.5M Medicaid scheme, NY attorney general says

A Shirley man who pleaded guilty to a $1.5 million Medicaid scheme using dead and imprisoned Medicaid recipients was sentenced to prison last week and ordered to pay restitution, according to the state attorney general’s office.

James Bessell Sr., 65, and his transportation company, Jim/Jim Rentals, pleaded guilty in September to one felony count of grand larceny related to the scheme that prosecutors said involved kickbacks from fraudulent Medicaid appointments

Jim Jim Rentals, listed online as a party and tent rental company, was charged as a taxi company he operated out of his home for Medicaid transportation services, according to the criminal complaint.

New York Attorney General Letitia James’ office prosecuted the case in Suffolk County court with the state Health Department and the Office of the Medicaid Inspector General.

The attorney general’s Medicaid Fraud Control Unit’s detectives began investigating Bessell for payments he and his company received between March 2019 and August 2023 for what they suspected were fraudulent transportation charges, according to the attorney general's office.

Prosecutors said Bessell used a pyramid scheme to pay some Medicaid recipients to miss doctor appointments and substance abuse treatment that were billed to Medicaid anyway. Investigators said 10 of those billings were made on behalf of people who were either dead, jailed, hospitalized or missed their appointment, according to a criminal complaint.

Bessell also was charged with recruiting others to join the scheme, which netted more than $1 million in stolen funds from Medicaid, according to the attorney general.

Bessell was sentenced on Jan. 8 to 1½ to 4½ years in prison and ordered to pay $1.5 million in restitution to the Medicaid fund. The company was sentenced to a conditional discharge and Bessell and his company were banned from government-funded health programs, including Medicaid and Medicare, officials said.

Bessell’s attorney could not be reached for comment on Thursday.

"Exploiting the Medicaid program for personal profit jeopardizes the health care of vulnerable New Yorkers," James said in a statement. "Jim Bessell’s fraudulent schemes were illegal and diverted critical resources away from Medicaid. My office will continue to stop fraud in our health care system to ensure every New Yorker can get the quality care they deserve."

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.