New York’s Largest Residential Services Provider Cooks the Books in Order Get Paid More

New York State recently settled claims against Young Adult Institute (YAI), a provider of residential services for developmentally disabled adults for $18 million. Under government sponsored programs, New York State reimbursed YAI for losses sustained in operating its state programs. The state charged YAI with inflating its losses by attributing additional expenses unrelated to the state programs to the losses in order to inflate the amount to be reimbursed, and by inflating the proper amount of those expenses. Specifically, YAI was alleged to have attributed work of certain employees to the program when, in fact, they never worked in the program. YAI also inflated funding expenses by categorizing certain employees as high level staff subject to higher reimbursement rates and salary. The government learned about the fraud after receiving a complaint from a whistleblower.

The article may be found here: http://www.ag.ny.gov/media_center/2011/jan/jan18a_11.html