Feds Take Bite Out Of Big Apple

New York City will pay the federal government more than $1 million to settle a whistleblower claim alleging fraud by the city’s schools.

The $1.375-million settlement, announced Monday, resolves allegations that the New York Education Department submitted false claims for Medicaid services not provided to special-education students.

The suit was brought by Dana Ohlmeyer, a counselor in the city schools.  She will get 15 percent of the settlement, or $206,250.  The city will also pay $40,000 to cover Ohlmeyer’s legal fees and costs.

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