New York announces penalties for medi-van company charged with Medicaid fraud

By Mark Iandolo | Jul 19, 2017

BINGHAMTON, New York (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced July 13 that Kenneth Cohn and Sharon Cohn and Yellow Medi-Van and Taxi Inc. have been convicted on Medicaid fraud and related charges.

“The Medicaid program relies on service providers’ compliance with licensing, safety and insurance laws,” Schneiderman said. “Companies that try to profit by illegally cutting those costs will be brought to justice.”

According to Schneiderman’s office, the defendants knowingly operated a medical transportation company, Yellow Medi-Van and Taxi, in violation of Broome County transportation regulations and the New York State Workers’ Compensation Act. During the period June 2, 2012, to Jan. 30, 2014, the defendants allegedly failed to have Worker’s Compensation insurance.

“This husband and wife’s theft from taxpayers was enabled through a trail of fraud and deceit that purposefully misled regulators and left their own employees exposed and vulnerable,” Inspector General Leahy Scott said.  “I will continue to vigorously pursue and hold accountable any individual or business that violates the Workers’ Compensation Law and defrauds government.”

The defendants will forfeit and release $455,604.39 Medicaid funds to the New York State Medicaid Fraud Control Unit. Additionally, they agreed to a settlement penalty of $50,000.

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