Attorney General Cuomo Announces Indictment Of Long Island's Largest Medicaid Equipment Supplier For Bilking Medicaid Out Of Over $1 Million

NEW YORK, NY (October 16, 2008)-New York State Attorney General Andrew M. Cuomo today announced the indictment of People’s Choice Surgical Supplies, Inc., formerly the largest Medicaid medical equipment supplier on Long Island, for stealing over one million dollars in Medicaid funds by filing fraudulent bills. The now-closed company is charged with stealing the identities of physicians by using their identity information to submit false Medicaid claims for equipment without the doctors’ knowledge or permission.

Charged along with the company were the following executives: President and CEO Cynthia Williams, 46; her husband, Vice-President David Williams, 48; and their niece, Billing Supervisor Kenya Gadson, 35. This indictment follows a civil suit that Attorney General Cuomo’s office filed last February against the company, Cynthia Williams and David Williams, seeking over $11 million in damages for fraudulent, inaccurate, and ineligible Medicaid claimso. That suit is currently pending.

“It is reprehensible that anyone would steal precious Medicaid funds that are intended to pay for the legitimate health care needs of some of Long Island’s most vulnerable patients,” said Attorney General Cuomo. “My office will continue to aggressively investigate and prosecute those caught stealing public funds and fight to ensure these dollars are directed to those that need them most.”

The criminal case against People’s Choice and its executives charges that between 2003 and 2006, the Long Island durable medical equipment (DME) supplier engaged in schemes to defraud Medicaid, which resulted in payments of over one million dollars for DME that was never ordered by physicians, as required. Instead, the case alleges that People’s Choice and its executives stole the identities of physicians in order to file false claims and be reimbursed for unnecessary equipment.

The defendants were charged as follows:

People’s Choice Surgical Supplies, Inc.of Hempstead, NY

  • Grand larceny in the first degree, a class B felony (one count)
  • Grand larceny in the second degree, a class C felony (one count)
  • Criminal possession of a forged instrument in the second degree, a class D felony (13 counts)
  • Offering a false instrument for filing in the first degree, a class E felony (5 counts)


Cynthia Williams, 46, President and CEO of People’s Choice

  • Grand larceny in the first degree, a class B felony (one count)
  • Grand larceny in the second degree, a class C felony (one count)
  • Offering a false instrument for filing in the first degree, a class E felony (one count)


David L. Williams, 48, Vice-President of People’s Choice

  • Grand larceny in the first degree, a class B felony (one count)
  • Grand larceny in the second degree, a class C felony (one count)
  • Identify theft in the first degree, a class D felony (three counts)
  • Offering a false instrument for filing in the first degree, a class E felony (five counts)


Kenya Gadson, 35, Billing Supervisor of People’s Choice

  • Grand larceny in the first degree, a class B felony (one count)
  • Grand larceny in the second degree, a class C felony (one count)
  • Identify theft in the first degree, a class D felony (three counts)
  • Offering a false instrument for filing in the first degree, a class E felony (four counts)


The case is now being prosecuted by Special Assistant Attorney General James Clarke of the Medicaid Fraud Control Unit’s Hauppauge Regional Office, assisted by Senior Special Investigator Gerard Worysz and the audit staff of the Hauppauge Regional Office.

The charges in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty in court.

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