A provider of residential services for the disabled that was part of a pooled bond deal issued by the Dormitory Authority of the State of New York agreed to pay $18 million in damages to settle Medicaid fraud charges, the New York attorney general announced last week.
The Young Adult Institute Inc., the state’s largest residential service provider, had inflated reported expenses since at least 1999 in order to receive additional Medicaid reimbursement, according to Attorney General Eric Schneiderman.
“Restoring New Yorkers’ faith in their government and cracking down on those who try to defraud the taxpayers will be two of our top priorities in this office,” he said in a news release. “Today’s announcement should send a clear message that we will leave no stone unturned in the fight against Medicaid fraud, waste and abuse in New York State.”
The $10.8 million will be returned to the New York State Medicaid program.
The organization last year was part of a $29.7 million pooled financing issued by DASNY last year on behalf of the Interagency Council, a nonprofit that uses the proceeds to loan funds to providers of services for the mentally and developmentally disabled.
The Young Adult Institute borrowed $13.6 million from the proceeds of that issuance.