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NY. Schneiderman / Cuomo Should Clean NYS’ Own Fraud RICO Racket First

January 29, 2011

AG sets up Taxpayer protection Unit, expands medicaid Fraud Unit

Question: Who is going to protect the taxpayer from NYS’ government fraud.

Here the AG is grandstanding against pension con-artists, large-scale tax evaders who rip off NYS government and its taxpayers.  The biggest crook is the government.  Let look at the most recent Medicaid and Social Security cases stemming from NYS.

Case 1.  Federal prosecutors charge NYC with improperly approving 24-hour home care for thousands of poor, elderly patients bilking taxpayers out of “tens of millions” over $60 million by overbilling Medicaid.

Case 2.  $22 Billion Dollar Medicaid Fraud NYS Health Department and Research Foundation for State University of New York (SUNY).  How many no-bid interagency money laundering agreements does SUNY have?  Apparently over $22 billion.

Department of Justice alleged that NYS Department of Health conspired with the SUNY Research Foundation to Engage in Massive Medicaid Fraud.

This isn’t the first time SUNY Research Foundation has been sued for fraud.  In 1992 a whistleblower plaintiff George Denoncourt filed a false claims act action against the Research Foundation of SUNY.  This suit resulted in a $26.97 million.  There are also other cases and pending investigations involving defrauding taxpayers by small business development centers run out of CUNY (City University of New York)

Case 3.  NY Medicaid Fraud and Corruption in Developmental Disabilities.  Federal officials launched an inquiry into Medicaid payments to nine state institutions for the developmentally disabled, after the Poughkeepsie Journal revealed the facilities had reimbursement rates of $4556 per day for each of  $1,400 residents. State officials have said the actual cost of care is only about one-third the rate, and that much of the $1.2 billion in federal matching funds every year supports other state programs for the disabled.  Maybe the funds are lining pockets of family and friends.

Case 4. Feds sue NY for Millions ($500 million) in Medicaid fraud. 

School officials around the state have enrolled tens of thousands of low-income students in speech therapy without the required evaluation, garnering more than $1 billion in questionable Medicaid payments for their districts. One Buffalo school official sent 4,434 students into speech therapy in a single day without talking to them or reviewing their records, according to federal investigators.

Now that the groundwork is established at who the real perpetrators of fraud are, let’s see what dribble is coming out of Albany.

Attorney General Eric Schneiderman announced today that he’s setting up a “Taxpayer Protection Unit” within his office to pursue corrupt contractors, “pension con-artists,” and large-scale tax evaders “who rip off New York State government and its taxpayers.” At the same time, he’s beefing up the office’s Medicaid Fraud Control Unit by adding dozens of prosecutors, investigators and auditors. He will use federal funds and increased recoveries to fund the initiatives.

Translation.  Federal and State funds are being stolen and NYS will use more Federal taxpayer money to find NYS fraudsters.  Sounds like Schneiderman is lining his own pockets and political bandwagon.

Those of us who believe in government as a force for good (a delusional AG:  apparently there is a disconnect between the AG’s office and what most NYers see as an entirely dysfunctional and corrupt NY government) must be the very harshest critics when it comes to waste, fraud, and corruption in the public sector,” Schneiderman said in a statement. “Today’s announcement is a signal to anyone thinking of ripping off New York taxpayers. We will go after you with every tool we have, and you will pay the price for these crimes.” Well Mr. Schneiderman, start with your own house starting with SUNY, CUNY and the government employees that are laundering money through non-profits, state entities, and sole source contracts to secure jobs and extra money for themselves, families and political allies.  Stay tuned to see if Cuomo and Schneiderman go after their own — or they’re all bark, no bite.

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