The State of New York has indicted six individuals and seven corporations and filed a related suit under the state’s False Claims Act in a complicated Medicaid fraud scheme. The suit charges that for ten years, Alexander Levy has schemed with other individuals and health care entities to defraud the state’s Medicaid program and then launder the illegal profits. In 1997, Levy was barred from future participation in the Medicaid program due to a finding that he had submitted false claims to Medicaid for services that were medically unnecessary or never even performed. Nevertheless, Levy allegedly established a new group of corporations structured to hide Levy’s interest. These included three medical clinics, a home health care business and two ambulette companies. Some patients at these clinics were treated by people posing as licensed physicians. The entities then billed Medicaid for a gigantic sum of money over a ten year period. Levy manipulated the funds received from Medicaid through a home health care agency and used his illegal profits for luxury cars and a divorce settlement with his ex-wife.

The state False Claims Act suit seeks reimbursement for all of the Medicaid funds received by the defendants, plus triple damages and additional fraud penalties.

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