Notices went out to 54 companies across the state that the attorney general's office contends are defrauding Medicaid.

The medical transportation industry has been rife with operators who illegally charge Medicaid for services they didn't actually provide.

State Attorney General Letitia James said Wednesday that her office uncovered at least 55 transportation companies across the state have been billing Medicaid for non-existent rides, resulting in an estimated loss of tens of millions of dollars each year to New York taxpayers.

"Transportation companies are billing Medicaid for fake rides and tolls, costing New York taxpayers tens of millions of dollars every year," said Attorney General Letitia James. "Today, we have uncovered 55 additional transportation companies operating throughout the state.

A local transportation company is caught in the crossfire of an investigation, temporarily halting operations.