37 Day and Counting

 

So Rubensito, if I may call you that, since we know each other for what is it now more than fifteen years. The eight year I was Public Advocate, and my almost eight years as Mayor, what is your next move? 

Has any candidate for governor asked you to be their running mate for Lieutenant Governor? I would, but I need someone from upstate who can balance my negative image up there. You know Brian Benjamin is in trouble, and maybe Kathy Hochul will find a new second banana, just like Andrew did when he ran for reelection his first time. I heard that former Bronx Borough President Freddy Ferrer was asked by Eliot Spitzer to be his running mate, but turned it down because he said it was a nothing position. Had he taken it he would have been the governor. Why don't you give Kathy a call Ruben, to see if she is looking for a new running mate? 

Permits Filed For 188 East 135th Street In Mott Haven, The Bronx

 

Permits have been filed for a ten-story mixed-use building at 188 East 135th Street in Mott Haven, The Bronx. Located between the Major Deegan Expressway and Harlem River waterfront, the lot is near the 138 Street-Grand Concourse subway station, serviced by the 4 and 5 trains. Jacob Sofer under the 101 Macombs Place LLC is listed as the owner behind the applications.

The proposed 109-foot-tall development will yield 74,794 square feet, with 65,354 square feet designated for residential space and 9,440 square feet for commercial space. The building will have 85 residences, most likely rentals based on the average unit scope of 768 square feet. The concrete-based structure will also have a 28-foot-long rear yard and 93 enclosed parking spaces.

Hamish Whitefield Architects is listed as the architect of record.

Demolition permits were filed in September for the single-story building on the site. An estimated completion date has not been announced.

Housing Lottery Launches For 1769 Jerome Avenue In Morris Heights, The Bronx

 

1769 Jerome Avenue in Morris Heights, The Bronx via NYC Housing Connect

The affordable housing lottery has launched for 1769 Jerome Avenue, a 16-story mixed-use building in Morris Heights, The Bronx. Designed by Marvel Architects and developed through the Jerome Housing Development Fund, the structure yields 175 residences. Available on NYC Housing Connect are 60 units for residents at 60 to 80 percent of the area median income (AMI), ranging in eligible income from $34,972 to $118,400.

Amenities include a superintendent, elevators, front desk security, a community room, residential terrace, gym, bicycle storage room, and a shared laundry room. Residences will have energy-efficient appliances, air conditioning, and hardwood floors.

At 60 percent of the AMI, there are 16 studios with a monthly rent of $947 for incomes ranging from $34,972 to $57,300; three one-bedrooms with a monthly rent of $1,192 for incomes ranging from $43,715 to $64,440; 15 two-bedrooms with a monthly rent of $1,420 for incomes ranging from $52,423 to $77,340; and one three-bedroom with a monthly rent of $1,631 for incomes ranging from $60,583 to $88,800.

At 80 percent of the AMI, there are six studios with a monthly rent of $1,163 for incomes ranging from $42,378 to $76,400; two one-bedrooms with a monthly rent of $1,465 for incomes ranging from $53,075 to $85,920; 14 two-bedrooms with a monthly rent of $1,770 for incomes ranging from $64,423 to $103,120; and three three-bedrooms with a monthly rent of $2,037 for incomes ranging from $74,503 to $118,400.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than January 18, 2021.

Long Island Man Sentenced to 200 Months’ Imprisonment for Attempting to Provide Material Support to Terrorists

 

Elvis Redzepagic of Commack Planned to Travel to Syria to Wage Violent Jihad

 Elvis Redzepagic was sentenced by United States District Judge Denis R. Hurley to 200 months’ imprisonment for attempting to provide material support and resources to the designated foreign terrorist organizations the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front. Redzepagic, a U.S. citizen, pleaded guilty to the charge in April 2021.

Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“With the imposition of today’s lengthy sentence, Redzepagic pays a steep price for his misguided embrace of terrorism and his attempts to join ISIS and the al-Nusrah Front in order to wage violent jihad,” stated United States Attorney Peace.  “This Office, together with our law enforcement partners, will remain vigilant in protecting the public from terrorist threats and in thwarting their violent attacks here and abroad.”

Mr. Peace thanked the Justice Department’s Office of International Affairs, the FBI Legal Attaché Office for Serbia, and the Government of Montenegro Ministry of Justice, Prosecutor’s Office, and Special Police Unit for their assistance in this case.     

In early 2015, Redzepagic began communicating with an individual he believed to be both the commander of a battalion in Syria and a member of ISIS or the al-Nusrah Front, and made attempts to join that individual’s battalion to engage in violent jihad.  In July 2015, Redzepagic traveled to Turkey and made multiple unsuccessful attempts to cross the border into Syria.  Unable to enter Syria from Turkey, Redzepagic traveled to Jordan in August 2016, but was stopped and deported by Jordanian authorities. 

In Facebook messages from October 2015, Redzepagic explained that “jihad” is when “you fight for the sake of God” and “die for the sake of Allah.”  Redzepagic stated that he traveled to Turkey to “perform Jihad and join Jabhat Al-Nusra.”  He predicted, “there will come a time where people will only know to say Allahu Akbar.”   

A search of the defendant’s laptop yielded a variety of ISIS-specific extremist propaganda, including ISIS nasheeds, or Islamist hymns, including the “ISIS Anthem” in English.  Redzepagic also repeatedly accessed the website “Put hilafeta,” or “Way to the Caliphate,” a Bosnian-language website for prospective foreign fighters from the Balkans who primarily sought to join ISIS and wage jihad in Syria.

DOI INVESTIGATION RESULTS IN SIX GUILTY PLEAS BY TAXI AND LIMOUSINE-LICENSED TAXICAB DRIVERS WHO DEFRAUDED PASSENGERS THROUGH OVERCHARGING

 

 Daniel G. Cort, Acting Commissioner of the New York City Department of Investigation (“DOI”), announced the guilty pleas of four current and two former taxicab drivers licensed by the City Taxi & Limousine Commission (“TLC”) for overcharging passengers with non-existing tolls and/or inflated toll charges. A seventh taxicab driver’s matter is pending in court. Each defendant was charged separately with Scheme to Defraud in the First Degree, a class E felony, and the criminal complaints were unsealed Friday, November 19, 2021. The six defendants pleaded guilty to a violation, waived their right to seal their cases, and were ordered to attend sessions with the Manhattan Justice Opportunities, which provides community-based diversion and sentencing options to reduce the use of incarceration and criminal convictions for individuals charged with low-level offenses and felonies. DOI began its investigation into toll fraud in the City’s taxicab industry after receiving an allegation of misconduct regarding a taxicab driver and then investigated in partnership with the office of Manhattan District Attorney Cyrus R. Vance, Jr.

 Acting Commissioner Daniel G. Cort said, “The City’s taxicab industry suffered a devastating economic blow over the last several years and, as a result, so many drivers have directly experienced a grave impact. While we have compassion for all those who have been affected, DOI acted to stop fraud by this group of drivers and protect taxicab passengers from being victimized. Fraud can never be allowed to fester anywhere in this City and must be brought to light. In addition, DOI issued recommendations to TLC so it can strengthen its procedures and prevent this conduct in the future. I thank the Manhattan District Attorney for their partnership on this matter and TLC for its cooperation and assistance.”

 DOI’s investigation included analyzing driver information, GPS data, and trip data from TLC, and also included identifying suspicious toll charges, reviewing maps developed from the GPS records of the cabs driven by the defendant drivers, creating maps for each suspicious trip and examining each to see if the appropriate toll amount was charged. In these matters, the taxicab drivers overcharged passengers by charging toll rates that did not account for the E-ZPass discount required by TLC regulations and/or charged passengers for tolls when none should have been charged. When a driver overcharges a passenger, the overcharge amount is not collected by the TLC but kept by the driver who does not have permission or authority from TLC to obtain any funds that result from overcharges. DOI issued recommendations that led the TLC to strengthen its rules as they relate to passenger alerts regarding toll charges and driver ability to select tolls within the five boroughs.

 The case of one taxicab driver remains pending in court: AYMAN ABDALLA, 51, of Elmhurst, N.Y., was charged with overcharging approximately 103 passengers for non-existent tolls and/or inflating toll charges for trips with a toll, totaling approximately $1,402 in overcharges between September 11, 2015, and March 17, 2017. The defendant is next due in court December 16, 2021.

 The following six individuals pleaded guilty on Friday, November 19, 2021, to a violation. The details of their charges are below, according to each of their criminal complaints:

 -MD ARIFUZZAMAN, 34, of Flushing, N.Y. was charged with overcharging approximately 620 customers for non-existent tolls and/or inflating toll charges for trips with a toll, totaling approximately $4,539 in overcharges between July 4, 2015, and March 18, 2017. 

 • YEVGENY OSTROV, 60, of Brooklyn, N.Y., was charged with overcharging approximately 600 passengers for non-existent tolls and/or inflating toll charges for trips with a toll, totaling approximately $2,151 in overcharges between July 1, 2015, and January 15, 2016. TLC revoked this defendant’s TLC license as a result of a matter unrelated to this fraud case. 

 • MANDEEP SINGH, 31, of Jamaica, N.Y. was charged with overcharging approximately 153 passengers for non-existent tolls and/or inflating toll charges for trips with a toll, totaling approximately $1,350 in overcharges between October 24, 2015, and March 15, 2017. 

 • ANVER KERIMOV, 62, of Staten Island, N.Y., was charged with overcharging approximately 116 passengers for non-existent tolls and/or inflating toll charges for trips with a toll, totaling approximately $1,270 in overcharges between approximately July 26, 2015, and February 7, 2017. • MOATAZ ATTIA, 44, of Queens, N.Y., was charged with overcharging approximately 330 passengers for nonexistent tolls and/or inflating toll charges for trips with a toll, totaling approximately $1,256 in overcharges between July 4, 2015, and January 25, 2017. 

 • ALY EL-DOKSH, 48, of Bethpage, N.Y., was charged with overcharging approximately 242 passengers for non-existent tolls and/or inflating toll charges for trips with a toll, totaling approximately $1,076 in overcharges between approximately July 1, 2015, and March 17, 2017. This defendant failed to renew his TLC license, according to TLC.

 Acting Commissioner Daniel Cort thanked Manhattan District Attorney Cyrus R. Vance, Jr., and his staff, for their partnership and prosecutions of this matter; and thanked TLC Commissioner Aloysee Heredia Jarmoszuk, and her staff, for their assistance and cooperation.

 The investigation was conducted by DOI’s Office of the Inspector General for TLC, specifically Assistant Inspector General Aleksandro Tilka, under the supervision of Deputy Inspector General Arturo Sanchez, Inspector General Whitney Ferguson, Deputy Commissioner/Chief of Investigations Dominick Zarrella, and Acting First Deputy Commissioner Philip Hung.

 Manhattan Justice is made possible through a unique partnership between the Center for Court Innovation, CASES, the Osborne Association, the New York City Department of Health and Mental Hygiene, the New York City Department of Social Services, the New York State Unified Court System, the Manhattan District Attorney’s Office, the local defense bar, and dozens of community-based service providers. More information on the program can be found here.

 DOI is one of the oldest law-enforcement agencies in the country and New York City’s corruption watchdog. Investigations may involve any agency, officer, elected official or employee of the City, as well as those who do business with or receive benefits from the City. DOI’s strategy attacks corruption comprehensively through systemic investigations that lead to high-impact arrests, preventive internal controls and operational reforms that improve the way the City runs.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - NOVEMBER 25, 2021

92,720 Vaccine Doses Administered Over Last 24 Hours

28 COVID-19 Deaths Statewide Yesterday 

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.   

"Happy Thanksgiving New York - let's continue to take care of ourselves and our neighbors, and keep our communities safe and healthy," Governor Hochul said. "We know the tools to avert a spike in the numbers this winter: Get vaccinated. Get the second dose if you haven't already. Get the booster if you've done both. And don't forget to wear a mask in public indoor places."

Today's data is summarized briefly below: 

• Test Results Reported - 226,602
• Total Positive - 8,388
• Percent Positive - 3.70% 
• 7-Day Average Percent Positive - 3.84% 
• Patient Hospitalization - 2,583 (+3)
• Patients Newly Admitted - 371 
• Patients in ICU - 509 (+11)
• Patients in ICU with Intubation - 246 (+4)
• Total Discharges - 214,246 (+361)
• New deaths reported by healthcare facilities through HERDS - 28
• Total deaths reported by healthcare facilities through HERDS - 46,343

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only. 

• Total deaths reported to and compiled by the CDC - 59,041

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings. 

• Total vaccine doses administered - 29,439,755
• Total vaccine doses administered over past 24 hours - 92,720
• Total vaccine doses administered over past 7 days - 700,307
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 85.6% 
• Percent of New Yorkers ages 18 and older with completed vaccine series - 78.2% 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 90.3%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 80.5% 
• Percent of all New Yorkers with at least one vaccine dose - 73.8% 
• Percent of all New Yorkers with completed vaccine series - 66.2% 
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 77.5% 
• Percent of all New Yorkers with completed vaccine series (CDC) - 68.2%

DEC ANNOUNCES SUMMER ENVIRONMENTAL EDUCATION CAMP REGISTRATION OPENS MARCH 6, 2022

 

75th Anniversary of DEC Summer Camps Program Parents and Guardians Encouraged to Register Early for 2022 Camping Season

 New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos announced today that online registration for DEC’s 2022 Summer Camps program will open Sunday, March 6, 2022, at 1 p.m. To celebrate 75 years, DEC’s Summer Camps program will host a series of events and share mementos, including retro logos incorporated into camper shirts, special recognition certificates, and a camp celebration each Saturday during the season. Past campers, families, sponsors, and staff will also have an opportunity to take a literal stroll down memory lane at their favorite camps. 

“For 75 years, DEC summer camps have been introducing young people to the great outdoors, inspiring kids and teens to learn about New York’s environment and helping grow the next generation of environmental stewards,” said Commissioner Seggos. “Our summer camps provide opportunities for adventure and education as campers hike, fish, and spend time in nature as part of their week-long experience.”

The Summer Camps program offers week-long adventures in conservation education for children ages 11-17. DEC operates four residential camps for children: Camp Colby in Saranac Lake (Franklin County); Camp DeBruce in Livingston Manor (Sullivan County); Camp Rushford in Caneadea (Allegany County); and Camp Pack Forest in Warrensburg (Warren County).

Parents and guardians should submit applications through the online registration program on the Summer Camps website at http://www.dec.ny.gov/education/29.html. Interested parents and guardians are encouraged to complete registration forms and register early since many weeks fill up quickly.

In addition to inviting parents and guardians to register children to participate in the DEC environmental education Summer Camps program, sporting clubs, civic groups, and environmental organizations are encouraged to sponsor one or more children for a week at camp. Information about becoming a sponsor and managing sponsor accounts is available at http://www.dec.ny.gov/education/1866.html on DEC’s website.

To help reduce the spread of COVID-19, DEC is implementing enhanced Centers for Disease Control, New York State Department of Health, and American Camp Association guidelines with current and comprehensive guidance, along with lessons learned from other camps in 2021. DEC’s goal is to ensure that protective measures and changes will not compromise the sense of adventure, fun, and camp spirit that brings campers back year after year. Guidance will be updated as the summer approaches and new information becomes available. 

NEW FOR 2022: Capacity at each camp will be reduced and individual campers will be limited to one week of camp. If spots at camps remain available after May 27, campers will have the opportunity to sign up for multiple weeks.

Camps Colby and DeBruce will offer one week of programing for children ages 14-17, and five weeks for children ages 11-13. Camp Pack Forest will host children ages 14-17 for five weeks, and two weeks for children ages 11-13. Camp Rushford will offer two weeks of programming for children ages 14-17, and five weeks of programming for ages 11-13. The complete schedule is available on the Summer Camps website at https://www.dec.ny.gov/education/2013.html. 

Campers will have the opportunity to participate in a wide variety of outdoor adventures and are encouraged to try new things. Activities may include fishing, bird watching, fly-tying, archery, canoeing, hiking, camping, orienteering, and hunter safety education. 

One hunter education program for firearm, bow, or trapping is offered at each camp during four of the weeks. Class size is limited for hunter education programs and campers must sign up for this program during registration and complete the homework in advance to be eligible. More information about New York’s hunter education program can be found at https://www.dec.ny.gov/outdoor/7860.html. 

Along with adventures, DEC campers engage in fun, hands-on activities and outdoor exploration focused on field, forest, stream, and pond ecological principles. Activities include collecting insects, using nets in a stream, investigating soil composition, measuring trees, or taking field notes and writing in journals. Trips to nearby state lands may include kettle bogs, State Parks, fish hatcheries, and nature museums.

Camp Pack Forest will offer “Outdoor Adventure Week” during Week 4, July 24-29. DEC encourages teens 14 to 17 who love being outdoors to sign up for this popular program at Camp Pack Forest. During this week, campers develop hands-on outdoor skills that go above and beyond the traditional camp week. In addition to typical camp activities, campers engage in team and trust-building activities, forestry, citizen science, conservation science, and more. In addition, visiting DEC and natural resource professionals introduce campers to a variety of career options.

All four camps offer at least six one-week sessions that operated Sunday to Friday beginning July 3, 2022. Pack Forest and Rushford will operate for seven weeks. One week of camp is $350 per child for 2022, and includes meals, trips, and a camp t-shirt. 

For more information, visit www.dec.ny.gov, email EducationCamps@dec.ny.gov, check out “NYS DEC Summer Camps” on Facebook, or write to DEC Camps, 3rd Floor, 625 Broadway, Albany, New York 12233-5256.

U.S. Attorney Files Civil Fraud Lawsuit Against Non-Profit And Settles Fraud Claims Against Its Founder For Inflating Medicaid Reimbursements By Falsely Reporting Millions In Costs

 

Founder Will Pay $220,000 and Admits That for a Decade He and Non-Profit Reported as “Allowable” Costs Amounts Expended to Pursue For-Profit Business Ventures

 Damian Williams, the United States Attorney for the Southern District of New York, and Scott Lampert, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced that the United States has filed a civil fraud lawsuit against Maranatha Human Services, Inc. (“MARANATHA”) and HENRY ALFONSO COLEY (“COLEY”) for falsely claiming that millions of dollars expended to benefit for-profit ventures owned and controlled by COLEY and MARANATHA, as well as payments to cover COLEY’s personal costs and excessive payments to COLEY’s family members, were reasonable and necessary costs in connection with MARANATHA’s provision of Medicaid-funded services to individuals with developmental disabilities.  MARANATHA is a non-profit organization based in Poughkeepsie, New York; COLEY founded MARANATHA in 1988 and served as its chief executive officer until earlier this year. 

Specifically, the Government’s complaint alleges that, with its board’s approval, MARANATHA funded for-profit companies operated by COLEY; paid excessive salaries and consulting fees to COLEY’s family members, often in exchange for little to no work; and paid for tens of thousands of dollars of COLEY’s personal expenses.  The Government further alleges that, from 2010 to 2019, COLEY and MARANATHA submitted to the State of New York cost reports that falsely claimed millions of dollars in these expenses as “allowable” costs, which fraudulently inflated MARANATHA’s Medicaid reimbursement rates and resulted in MARANATHA receiving millions of dollars in Medicaid funds to which it was not entitled.

Simultaneous with the filing of the lawsuit, the United States has resolved its claims against COLEY through a settlement approved by U.S. District Judge Kenneth M. Karas.  Pursuant to the settlement, COLEY will pay $88,000 to the United States and has admitted and accepted responsibility for conduct alleged by the Government in its complaint as further described below.  COLEY has also agreed to pay $132,000 to the State of New York to resolve the State’s claims, for a total recovery of $220,000.  The settlement amount is based on the Office’s assessment of COLEY’s ability to pay based on the financial information he provided.  COLEY also agreed never to work for or accept payments from any entity that receives funds from a federal healthcare program.  In addition, COLEY entered into a Voluntary Exclusion Agreement with HHS-OIG, which prohibits him from participating in Medicaid and other federal healthcare programs for 15 years.

 U.S. Attorney Damian Williams said: “For a decade, Henry Alfonso Coley and Maranatha defrauded Medicaid by submitting reports that fraudulently claimed as allowable expenses millions of dollars spent on for-profit companies owned by them, on excessive salaries and fees for Coley’s family members, and on Coley’s personal expenses.  These expenses were not related to providing care or assistance to the individuals with developmental disabilities Maranatha was meant to serve.  This Office will continue to hold entities and their executives accountable when they abuse our federal healthcare programs.”

HHS-OIG Special Agent in Charge Scott Lampert said: “Any threat to the financial health of Medicaid is a threat to the vulnerable people who depend upon it for critical services.  We will continue to hold those who steal from federal health care programs accountable for their actions.”

According to the Government’s complaint, from 2010 through 2019:

MARANATHA was required to submit cost reports, called Consolidated Financial Reports (“CFRs”), to the State of New York each year, specifying the reasonable and necessary costs MARANATHA incurred in providing services for its Medicaid-funded programs.  These costs were to be reported as “allowable” costs.  MARANATHA was required separately to report its other, “non-allowable” costs; “non-allowable” costs include costs unrelated to its Medicaid-funded programs, as well as any unreasonable or unnecessary costs. 

With its board’s approval, MARANATHA funded for-profit companies operated by COLEY and owned by COLEY or MARANATHA, as well as various unincorporated pet projects started by COLEY.  One of the chief purposes of these ventures was to serve as vehicles to funnel money to COLEY’s daughter, as well as others associated with COLEY, whom MARANATHA paid for work they purportedly did to support these ventures and projects.  Over the course of a decade, not one of these ventures ever launched a product or service or earned a single dollar in revenue.  COLEY and MARANATHA hired COLEY’s family members as employees and consultants, some in connection with these for-profit ventures, and others in connection with MARANATHA’s Medicaid-funded services.  COLEY and MARANATHA paid excessive salaries and consulting fees to COLEY’s family members, often in return for little to no work.  MARANATHA also paid for tens of thousands of dollars of COLEY’s personal expenses, including more than $34,000 for personal training sessions at a gym.

COLEY and MARANATHA knowingly submitted CFRs annually to the State of New York fraudulently reporting these expenses – totaling millions of dollars – as “allowable” costs.  On each CFR, COLEY falsely certified to the completeness and accuracy of the report.  COLEY and MARANATHA knew that the State of New York relied on providers’ CFRs when setting provider-specific reimbursement rates for certain Medicaid-funded programs, including MARANATHA’s largest Medicaid-funded program.  As a result of COLEY’s and MARANATHA’s falsely inflated cost reports, the State of New York awarded MARANATHA a higher reimbursement rate and MARANATHA received millions of dollars in Medicaid funds to which it was not entitled.

COLEY has settled the claims against him in the Government’s complaint.  As part of the settlement, COLEY admits, acknowledges, and accepts responsibility for the following conduct:

• COLEY made a presentation to MARANATHA’s board of directors acknowledging that “[i]t was always the plan for Maranatha to use government funds as a launching pad to create private enterprise that would enable it to not be dependent on government while at the same time fulfilling its function” consistent with its mission.
• COLEY was familiar with the requirement that MARANATHA distinguish “allowable costs” from “non-allowable costs” in its CFRs.
• COLEY knew that the CFRs are used by the New York State Department of Health to determine MARANTHA’s reimbursement rates for the provision of Medicaid services.
• In each CFR that MARANATHA submitted since 2010, COLEY certified that the (i) the “information furnished in this report . . . is in accordance with the instructions and is true and correct to the best of my knowledge”; and (ii) the statement attached to the CFR “fully and accurately represents all reportable income and expenditures made for services performed in accordance with the  provision of the Mental Hygiene Law and approved budgets.”
• COLEY signed the certifications set out above in CFRs that reported as “allowable costs” amounts expended not for MARANTHA’s provision of Medicaid services but instead to pursue certain for-profit business ventures.
• In particular, MARANATHA submitted CFRs reporting as “allowable costs” costs expended to benefit certain entities owned and/or operated by COLEY and/or MARANATHA that did not provide Medicaid-funded services (the “Non-Medicaid Ventures”).   
• MARANATHA paid certain employees and contractors, including COLEY’s family members, to perform work related to the Non-Medicaid Ventures.  For example, since 2010,  MARANATHA paid COLEY’s daughter more than $300,000.  Though much of her time was spent on work related to the Non-Medicaid Ventures, COLEY and MARANATHA reported her full compensation as an “allowable cost” in the CFRs.
• Since 2010, COLEY received more than $2 million from MARANATHA in salary and benefits, and MARANTHA claimed the full amount of his compensation as “allowable costs” on its CFRs. However, COLEY devoted much of his to time to working on the Non-Medicaid Ventures.

In connection with the filing of the lawsuit and settlement, the United States joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.

Mr. Williams praised the outstanding investigative work of the HHS-OIG, and he thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation.