New York – The relentless pursuit of justice by Attorney General Letitia James has yielded a significant victory, securing over $5 million from Community Options, Inc. and Community Options NY, Inc. (Community Options) for their egregious fraud against the Medicaid program.
For years, this nonprofit organization, which was supposed to provide essential services to New York City residents with developmental disabilities, ignored its obligations. Instead of delivering on its promise of ‘day habilitation’ services, Community Options submitted false claims to Medicaid, defrauding the system and robbing vulnerable New Yorkers of the care they needed.
Attorney General James, in a statement, highlighted the importance of these services: “New Yorkers with developmental disabilities rely on quality, community-based activities to lead fulfilling lives. Community Options ignored the rules designed to ensure it was delivering the services promised, depriving them of valuable opportunities.”
The joint investigation by the Office of the Attorney General’s Medicaid Fraud Control Unit and the United States Attorney’s Office for the Southern District of New York revealed a systematic failure within Community Options. Employees failed to meet basic requirements, including providing an adequate number of services and documenting them correctly.
Worse still, when overpayments were discovered, rather than rectifying the situation, senior employees instructed subordinates to commit fraud by creating and back-dating missing documents to cover their tracks.
This brazen disregard for the law has been met with a substantial penalty. Community Options will repay Medicaid over $5 million, ensuring that those who were truly in need can access the services they deserve. Attorney General James’ relentless pursuit of justice continues to shine a light on those who exploit vulnerable populations and underscores the commitment to protect New Yorkers from such crimes.”
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Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption|Fraud & Financial Crimes
- Source: Official Source ↗
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