Frank's Taxi denied appeal to operate in wake of Medicaid fraud indictment

Edward Donnell (Courtesy/City of Rochester video)

ROCHESTER - The City Council on Tuesday voted to uphold the city's licensing board's decision to deny a continuing taxi license for Frank's Taxi, whose owner was indicted in December in a Medicaid transportation fraud scheme.

Owner Edward Donnell IV, 38, Liudmila Bulatova, 36, who did the bookkeeping; David Hackney, 39, a mechanic and driver; and Angelica Soule, age 32, Hackney's girlfriend, were all charged in the alleged fraud.

Donnell asked the City Council to allow him to continue his business, saying an indictment does not mean he's guilty and that all are presumed innocent until proved otherwise.

But City Attorney Terence O'Rourke said the city's licensing board doesn't have to prove his guilt, Donnell, rather, has to prove his innocence before the city can allow him to operate.

"The city is not required to wait for adjudication," O'Rourke said. "The license burden is on the applicant. His license from the city, that seal on the license says it's a good business."

After no discussion the Council voted 12-1, with Councilor Doug Lachane's vote the only one in favor of approving Donnell's appeal.

The charges are all related to allegedly presenting fraudulent claims for non-emergency medical transportation services, and obtaining more than $20,000 for transportation services that were never provided between June 2, 2015, and April 30, 2016, by the Somersworth-based taxi company.

Donnell, Hackney, Bulatova and Soule were each charged with one count of conspiracy to commit theft by deception, a class A felony, one count of theft by deception, a class A felony, one count of conspiracy to make false claims, a class B felony and one count of making false claims, a class B felony in connection with scheme to defraud the State's Medicaid Program.

In addition, Donnell was charged with one count of Presenting False Records and one count of Destruction of Records, both class B felonies.

The penalty for each false claims indictment is 3½-7 years, for the theft by deception it is 7 ½-15 years, and for Presenting False Records and Destruction of Records it's 3 ½-7 years.

The company currently lists a Farmington address on Ten Rod Road.

The firm has been around since 2013 and for years was known locally for its $5 anywhere in Rochester fares.