Suit Alleges Fraud By Long Island Medicaid Service Provider

Attorney General Spitzer and Nassau County Executive Thomas R. Suozzi today announced a lawsuit against a Long Island home health care company accused of defrauding the Medicaid program.

The lawsuit alleges that Nurses On Hand Registry, Inc. (NOH), of Rockville Centre, and Gloria Stanzione, its president and sole owner, misrepresented the hours the company worked and falsified documents used to verify its services.

"The effort to combat Medicaid fraud requires close cooperation by different levels of government," Spitzer said. "My office is pleased to work cooperatively with law enforcement and local governments to ensure that Medicaid patients are protected and tax dollars are used wisely."

Nassau County Executive Thomas R. Suozzi said: "Medicaid is a vitally important program for the neediest of our residents and every effort to cut fraud, waste and abuse must be pursued. I commend my team of investigators for uncovering this fraud and I am pleased the state, after its review, is joining us in this lawsuit."

The complaint against NOH involves a two-year time period beginning January 1, 2003. During this time, NOH contracted with Nassau County to provide various personal care services to Medicaid recipients.

The complaint alleges that NOH failed to properly keep track of employee login and logout times and, as a result, overbilled tens of thousands of dollars for its services.

The complaint further alleges that the company failed to provide manual back-up documentation or maintain records for the six-year time period required under the contract. It is also alleged that the company attempted to retroactively modify and falsify its documentation.

The lawsuit seeks to:

• Mandate an audit of the company's books;
  
• Recover all Medicaid costs improperly paid to NOH; and
  
• Assess appropriate fines and costs associated with the investigation.

The complaint, filed in State Supreme Court in Nassau County, was originally investigated by Nassau County's Commissioner of Investigations. The case was referred to the Attorney General's office earlier this year.

During the most recent Federal fiscal year, recoveries by New York State's Medicaid Fraud Control Unit (MFCU) topped $219 million.
Nassau County was represented in this action by County Attorney Lorna Goodman and Commissioner of Investigations Bonnie Garone.

New York is represented in this action by Assistant Attorney General James Cudden. The investigation in this matter was led by Alan Buonpastore, Regional Director of MFCU's Long Island Office. He was assisted by Senior Special Investigator Thomas McBride, Supervising Special Auditor Investigator John Grunenberg, and Special Auditor Investigator Charles Meyer.