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Post date: July 1 2005

Rockland County Social Worker Admits Stealing $275,000 From The Government

Attorney General Spitzer today announced that a Nyack social worker has admitted to stealing nearly $275,000 from the Medicare and Medicaid programs by billing for therapeutic services he never rendered.

Clinical social worker Allen Steven Levy appeared on June 21 before Rockland County Court Judge Kenneth Resnick and pleaded guilty to two counts of second-degree grand larceny to resolve the charges pending against him.

As part of a plea agreement, Levy will be sentenced to six months in jail and five years' probation. In addition, he will surrender his license to practice psychotherapy in New York and repay $274,431 in restitution. Levy has already repaid $100,000, and will pay the balance of the restitution on or before sentencing, which is scheduled for August 16, 2005.

From March 1, 1998, to February 2, 2004, Levy systematically presented fraudulent claims for payment to the Medicare and Medicaid programs, including billing for services he did not provide and for rates he was not entitled to charge. As part of his scheme to defraud the government, Levy knowingly prepared false psychotherapy progress notes in patient files. As a result, Levy illegally received $190,005 and $84,426 from the Medicaid and Medicare programs, respectively.

Levy, 53, of 54 Lee Drive in Fairfield, Connecticut, formerly maintained offices at 48 Birch Street and 2 Crossfield Drive in Nyack, and at 350 Central Park West and 25 West 81 Street in Manhattan.

Special Assistant Attorney General Thom O'Hanlon, of the Medicaid Fraud Control Unit's Pearl River Regional Office, prosecuted the case. Supervising Investigator Paul Greenspan, Principal Special Auditor Investigator John Regan and Associate Special Auditor Investigator Melissa Stoebling assisted in the investigation.