No doubt many of our New York Health Care Law Blog recall the headlines generated nearly three years ago when Narco Freedom founder Alan Brand and his son were arrested back in 2004. The nonprofit clinical and housing organization and some who ran it were charged with defrauding Medicaid.
A recent news article points out that Narco Freedom trustee Alan Nisselson last month pleaded guilty on behalf of the company to charges that include enterprise corruption, grand larceny and filing false paperwork.
Narco Freedom was at one point New York City's largest provider of temporary homes for people in treatment for substance abuse.
State Attorney General Eric Schneiderman has said that the organization used Medicaid to pad profits.
"Narco Freedom operated a years-long criminal enterprise that ripped off taxpayers and took advantage of those in need of substance abuse treatment," Schneiderman said.
In 2015, Schneiderman charged the organization and executives with defrauding Medicaid to the tune of $27 million. Narco Freedom has admitted to filing false statements with the state's Department of Health and others as part of its efforts to get reimbursements for unneeded and excessive medical services for patients.
According to the Bronx Times, Narco Freedom operated a variety of rehab and mental health facilities in Manhattan, Queens, Brooklyn and the Bronx before it was shuttered.
Those facing investigation by the FBI or other law enforcement agencies over possible Medicaid or Medicare fraud should speak with a city law firm experienced in helping clients effectively address official concerns.