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Two scammers pled guilty to a $68,000,000 fraud scheme tied to the state's Medicaid home care program. The crooks billed for millions in services that they never provided, in a case linked to the CDPAP program, which allows people who need care to hire their own caregiver through Medicaid, choosing a friend or relative as long as they go through the process.
News Nation reports that two New Yorkers pled guilty to a involving large-scale recruiters who bribed patients with laundered cash and billed Medicaid over $68,000,000 for services that were not provided. This follows a separate million-dollar-plus conviction announced by New York Attorney General Letitia James this week, still tied to fake billing and kickback schemes within the state's Medicaid program. CDPAP, the Consumer Directed Personal Assistance Program, is described as meant to make care easier for loved ones at home rather than in nursing homes, but is targeted by sophisticated scammers.
Attorney John Flynn explains that while CDPAP is for people who need care, it’s become a target for scammers; the program’s intent is good, but bad people are taking advantage of federal and state money. The article notes that fraud in the CDPAP program is not new. In 2018, a man arranged for friends and family members to be paid as home caregivers for his sick mom, only to discover his mom was living in Bangladesh; during home inspections, his brother impersonated her to keep the fraud going. In 2024, Governor Kathy Hochul called CDPAP a “racket” and described it as one of the most abused programs in New York’s history. News Nation asked the governor’s office for comment on the recent fraud charges; a spokesperson said she has taken steps to fix the system by cutting out hundreds of middlemen. The governor’s office also cited Letitia James’s transportation company bust as an example of efforts to stop this kind of crime.
The report notes that when Republicans asked for an audit of the CDPAP program in New York, supporters called it a political stunt, arguing that measures are already in place. Amid ongoing fraud, the narrative references a broader effort, including President Donald Trump announcing a new division to combat crimes like this. Natasha and Lea Lando are reporting on this developing story from New York. Lea Lando is live in Manhattan with the latest.