Gallup pharmacy allegation included in statewide Medicaid fraud case

Gallup patients who relied on Safeway for rides or prescriptions were pulled into a statewide fraud case after federal and state officials filed a civil forfeiture complaint against Safeway Medical Transportation LLC and separate felony charges against Safeway pharmacist August Daniel Martin. The transportation case alleges Medicaid billing for trips that never happened, while the pharmacy case centers on forged prescriptions in Gallup.

United States Attorney Ryan Ellison and Attorney General Raúl Torrez said the complaint seeks to forfeit more than $2 million in seized funds tied to alleged health care fraud and money laundering. The filing says Safeway, a New Mexico non-emergency medical transportation provider, billed Medicaid for drivers allegedly billing for driving themselves to appointments, duplicate trips, inflated mileage and falsified transportation records. Federal officials tied the action to the Justice Department’s 2026 National Health Care Fraud Takedown, which produced charges against 455 defendants, including 90 doctors and other licensed medical professionals, in schemes involving more than $6.5 billion in false claims and significant patient harm, including death.

In the separate Gallup criminal case, August Daniel Martin, 60, faces felony counts including acquiring a controlled substance by misrepresentation, forgery and violations of the Controlled Substances Act. A probable-cause affidavit says a Safeway employee told police in 2024 that he saw Martin on video taking faxed prescriptions from a doctor’s office, whiting out names and creating prescriptions for himself. Martin’s license was later suspended after he failed to comply with the state health professional wellness program, and his initial appearance was scheduled for July 17.

For McKinley County residents, the clearest warning signs are on billing statements and prescription records: the FBI says patients should check explanation-of-benefits notices, make sure the dates, locations and services billed match care actually received, and treat insurance information like a credit card. The bureau says health care fraud can raise premiums, expose people to unnecessary procedures and increase taxes. New Mexico officials said the state and federal cases are being pursued through the Medicaid Fraud Control Unit and other law enforcement partners, a parallel crackdown that reaches both transportation billing and controlled-substance access in Gallup.