The U.S. Department of Justice (DOJ) on June 16 sued New York health officials and a Georgia-based company over an alleged fraud scheme involving the state’s $10 billion Medicaid homecare program.
The lawsuit names state Health Commissioner James McDonald, state Medicaid Director Amir Bassiri, and financial management services company Public Partnerships LLC as defendants.
In its lawsuit, the DOJ asked the court to issue an injunction barring the defendants from making “false statements and misrepresentations” about New York’s Consumer Directed Personal Assistant Program (CDPAP) and prevent what it called the company’s “siphoning of funds from the federal coffers.”
“New York’s failure to police a favored vendor that unlawfully siphoned millions of dollars of Medicaid funding is egregious and betrays the public trust,” Assistant Attorney General Brett Shumate of the DOJ’s Civil Division said in a statement….