A.G. Schneiderman Announces Arrests Of Mother And Son Operating Nursing Agency That Filed Fraudulent Medicaid Claims And Stole More Than $300,000

Manhattan Agency Put Nurses On Duty For 48 Hours Straight And Illegally Overcharged The Medicaid Program

Schneiderman: These Defendants Will Be Held Accountable For Fleecing Taxpayers And Putting Patients At Risk

NEW YORK – Attorney General Eric T. Schneiderman today announced the arrests of Nasreen Khan, 67, the owner of Foster Nurse Agency, and her son Rehan Khan, 38, an employee, for stealing over $300,000 from the Medicaid program. The Manhattan-based Foster Nurse Agency provides private-duty nurses to care for Medicaid recipients who are in need of at home nursing services across New York City. Medicaid regulations require nurses to work no more than 16 hours in any 24-hour period. This is to ensure that appropriate and safe care is being provided to those recipients. Over a six-year period, the Khans, through their agency, routinely scheduled nurses to work more than 16 hours. In many cases, the nurses worked from 24 to 48 hours straight without any relief.

In order to conceal this from Medicaid, the Khans falsified claim forms to indicate that their nurses did not work more than 16 hours. They did this by substituting the names and license numbers of other nurses in order to lead Medicaid to believe that there were multiple nurses working shifts that were longer than 16 hours. The Khans, whose agency is located at 316 Fifth Ave., fraudulently billed more than 13,000 hours to Medicaid this way, fleecing taxpayers of over $300,000.

“Medicaid regulations are in place to ensure the welfare of those who are in need of care. By violating the rules, these individuals betrayed the public trust and put people at risk,” Attorney General Schneiderman said. “These defendants have not only defrauded the Medicaid system out of hundreds of thousands of taxpayer dollars, but they also allowed nurses to provide substandard care to their patients. Our office will hold them accountable for these crimes.”

Both Khans are charged with felony Grand Larceny in the Second Degree, and multiple counts of Offering a False Instrument for Filing in the First Degree, also felonies. They each face a maximum of five to fifteen years in state prison. Their agency will be excluded from participating in the Medicaid program.

The charges against the defendants are accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being prosecuted by Special Assistant Attorney General William McClarnon of the Attorney General’s Medicaid Fraud Control Unit, under the supervision of Regional Director Anne Jardine, Executive Deputy Attorney General for Criminal Justice Kelly Donovan and Special Deputy Attorney General Monica Hickey-Martin. The investigation was led by Senior Special Investigator Frank Bluszcz, under the supervision of Supervising Special Investigator Paul Greenspan, Chief Investigator Thaddeus Fisher, Principal Special Auditor Investigator Jean Moss and Associate Special Auditor Investigator Sandra Iskowitz, all under the supervision of Regional Chief Auditor John Regan.

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