A.G. Schneiderman Announces Sentencing And $300k Settlement In The Case Of Michigan Man Who Fraudulently Obtained Medicaid Payments In New York

Man Admits Using Illegally Obtained Medical License To Fraudulently Collect Thousands Of Dollars In Medicaid Claims

Schneiderman: Those Who Attempt To Defraud The Healthcare System In Our State Will Be Brought To Justice

BELMONT – Attorney General Eric T. Schneiderman today announced the sentencing and a $300,000 settlement in the case of Fitzgerald A. Hudson, who illegally billed Medicaid for physician’s services after obtaining enrollment as a Medicaid provider by using a fraudulently obtained New York medical license. 

Hudson, of Dearborn, Michigan, pleaded guilty to one count of Grand Larceny in the fourth degree, and he was sentenced to one year of incarceration and $21,000 in restitution to the State of New York for payments he illegally accepted through the Medicaid program. Under a separate civil settlement reached with the Attorney General’s Medicaid Fraud Control Unit, Hudson will repay the state $300,000 for Medicaid payments made to him and other healthcare providers for services he provided and ordered. 

“No matter how elaborate the lie or cunning the criminal, those who attempt to defraud the healthcare system in our state will be brought to justice,” said Attorney General Schneiderman. “Misrepresentation of one’s credentials as a medical professional to make money is a detriment to taxpayers and dangerous to patients. My office is dedicated to tracking down those who would abuse the system and preserving the integrity of Medicaid.”

The Attorney General’s civil suit, filed in Allegany County Court in September 2012, alleges that Hudson, 53, engaged in a course of misconduct in which he repeatedly falsified applications related to his medical degrees – including in applications for his state medical license and Medicaid provider enrollment.

In 2007, Hudson misrepresented having successfully completed his undergraduate and residency training when he applied for and was granted a medical license from the State of New York. Then, in 2009, knowing that he was never fully trained to practice medicine or duly licensed, Hudson enrolled as a Medicaid provider based on an application he submitted to the New York State Department of Health on which he falsely represented that there were no proceedings pending that could result in the revocation of his medical license. Only days before submitting his application to enroll as a Medicaid provider, Hudson had been personally served with written notice that proceedings to revoke his license to practice medicine had been commenced before the State Board for Professional Medical Conduct. In 2010, those proceedings resulted in the revocation of Hudson’s medical license in New York.

Hudson previously pleaded guilty in the criminal case before Justice Thomas P. Brown in Allegany County Court. He admitted that he obtained $21,630.24 from the Medicaid program under false pretenses on claims that were submitted for his services from December 1, 2009, to May 7, 2010, after he had lied on his provider enrollment application. 

Attorney General Eric T. Schneiderman thanks the New York State Department of Education and the New York State Department of Health for their cooperation with the Medicaid Fraud Control Unit investigation.

The criminal case was handled by Gary Baldauf, Buffalo Regional Director of the Attorney General’s Medicaid Fraud Control Unit, while the civil case was handled by Sally Blinken, Special Assistant Attorney General of the Medicaid Fraud Control Unit, under the supervision of Deputy Attorney General for the Medicaid Fraud Control Unit Monica J. Hickey-Martin and Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The investigation was conducted by Supervising Special Investigator Kathleen Donahue and Supervising Special Auditor-Investigator Raymond August. 

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