DOCUMENTS
AGREEMENT PRESS RELEASE
Acting U.S. Attorney Announces $5 Million False Claims Act Settlement With Providers Of Programs For Adults With Developmental Disabilities
Published by the United States Department of Justice | View article on www.justice.gov
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has filed and simultaneously settled a civil fraud lawsuit against COMMUNITY OPTIONS, INC. (“COI”) and COMMUNITY OPTIONS NEW YORK, INC. (“CONY”, and together with COI, the “Defendants” or “Community Options”).
ENFORCEMENT ACTIONS
Attorney General James Recovers Over $5 Million From Nonprofit For Failing To Serve New York City Residents With Developmental Disabilities
Penalty Amount: $0
Filed under: State Enforcement Agencies
NEW YORK – New York Attorney General Letitia James today secured over $5 million from Community Options, Inc. and Community Options NY, Inc. (Community Options) for failing to properly provide services for people with developmental disabilities and knowingly submitting false claims to Medicaid for services. Community Options is a nonprofit that provides “day habilitation” services to adults with developmental disabilities in New York City, ensuring they have enriching and educational community-based activities. A joint investigation between the Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU), and the United States Attorney’s Office for the Southern District of New York (USAO-SDNY) revealed that Community Options failed to follow regulations and requirements designed to ensure the people it serves are receiving safe and adequate care. Under settlements with OAG and USAO-SDNY, Community Options will repay Medicaid over $5 million in reimbursements it received for day habilitation services that it failed to provide and document in compliance with state regulations.