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Rehab Center Fined $16.5 Million For Bilking Medicaid

Law360 (October 2, 2006, 12:00 AM EDT) -- A drug rehab clinic in Queens has been slapped with a $16.5 million fine for cheating Medicaid, the largest penalty ever from the New York Medicaid inspector general.

The clinic, Community Related Services Inc., specializes in treating elderly patients from the former Soviet Union. The clinic treats around 600 people a day, a large proportion of which are women from Uzbekistan, according to Henry Zwack of the New York State Office of Alcoholism and Substance Abuse services (OASAS).

Investigators found that, compared with the statewide average...
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