NYC Education Dept. Hit With $2M Medicaid False Claims Suit

Law360, New York (October 23, 2012, 10:32 PM EDT) -- The U.S. has intervened in a $2 million employee whistleblower suit accusing the New York City Department of Education of sending false claims for reimbursement to Medicaid for student psychological services between 2001 and 2004, U.S. Attorney Loretta Lynch said Tuesday.

The complaint, unsealed by the the Eastern District of New York on Tuesday, accuses the department of knowingly running a billing system that submitted claims for services that were not provided. The U.S. says that in the 2001-2002 school year alone, 12 percent of the...
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