The CEO of a purportedly nonprofit New York City healthcare provider, Assistance By Improv II, was arrested Monday for a $5 million Medicaid fraud scheme, Attorney General Eric Schneiderman said in a release.
ABI is marketed as a medical provider that doubles as a charitable housing organization to help developmentally disabled New Yorkers find affordable housing. Many of ABI's clients, most of whom receive Medicaid, were duped into giving owner Joseph Wright their healthcare information and completing unnecessary medical tests to qualify for housing. Physicians and counselors at ABI submitted the tests as false claims to Medicaid for reimbursement.
"This defendant allegedly took advantage of the hopes and needs of the most vulnerable of our neighbors to line his pockets with millions of taxpayer dollars," Attorney General Schneiderman said in the release.
In an eight-month timeframe, 125,000 claims valued at $10 million were submitted to Medicaid by counselors and physicians who worked for ABI and Mr. Wright. The state reimbursed the physicians with $5 million, and they allegedly turned around and paid Mr. Wright millions.
Mr. Wright faces 25 years in prison.