U.S. Attorney Settles Fraud Lawsuit Against Non-Profit For Inflating Medicaid Reimbursements By Falsely Reporting Millions In Costs

Damian Williams, the United States Attorney for the Southern District of New York, and Scott Lampert, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (ôHHS-OIGö), announced that the United States has settled civil fraud claims against Maranatha Human Services, Inc. (ôMARANATHAö) for falsely claiming that millions of dollars expended to benefit for-profit ventures owned and controlled by MARANATHA and its founder HENRY ALFONSO COLEY (ôCOLEYö), as well as payments to cover COLEYĺs personal expenses and excessive payments to COLEYĺs family members, were reasonable and necessary costs in connection with MARANATHAĺs provision of Medicaid-funded services to individuals with developmental disabilities.á MARANATHA is a non-profit organization based in Poughkeepsie, New York; COLEY founded MARANATHA in 1988 and served as its chief executive officer until last year.

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