Scandal-Ridden Haredi-Owned Home Healthcare Agency Greenlighted By State Health Department, Despite Record Of Alleged Medicaid Fraud And Patient Abuse
Americare Certified Special Services, controlled by haredi bigwig Martin “Elly” Kleinman, is poised to get an expanded license on the recommendation of the New York State Health Department, despite years of lawsuits and regulatory actions against it for alleged Medicaid fraud that included a shocking scheme to falsify patients' medical records in order to have those patients get unnecessary surgeries.
Martin "Elly" Kleinman
Scandal-Ridden Haredi-Owned Home Healthcare Agency Greenlighted By State Health Department, Despite Record Of Alleged Medicaid Fraud And Patient Abuse
Shmarya Rosenberg • FailedMessiah.com
The New York Times reports that it was “a medical scheme that shocked the public conscience when it came to light in 2001: Two dozen mentally ill residents of a Queens adult home were forced to have unnecessary prostate surgery that generated tens of thousands of dollars in government fees.”
But that was only one of the scams allegedly run by top executives of home healthcare agency Americare Certified Special Services, controlled by haredi bigwig Martin “Elly” Kleinman.
In the Queens case, Americare settled with the federal government and paid $1.2 million fine while admitting no wrongdoing.
But there have been a series of both federal and state investigations into alleged Medicaid fraud by Americare, and separate lawsuits alleging “patterns of patient mistreatment, forgery of medical documents and sexual misconduct by a top executive,” the paper reported today.
Americare reportedly denies all of those accusations.
Even so, Americare was fined $7 million in 2005 and $8 million in 2008 for falsely obtaining Medicaid and state funds.
In late December 2012, Americare was accused by whistleblowers of of double billing Medicare – a charge Americare denies, as well.
You might think that with a track record like this, Americare, which is based in New York, would not be able to get a state contract or expanded state certification.
But you if do you would be woefully ignorant of the rampant corruption in New York State politics – and you would also be wrong.
A new review of Americare by the New York State Health Department reportedly cites its “20 years’ experience in providing home care services” and recommends granting Americare an expanded home health care license. But that report fails to cite the multiple legal actions taken against Americare.
Today, the matter of expanding Americare’s license will reportedly be heard by a committee of the Public Health and Health Planning Council. The Times reports that the Council committee “often adopts such recommendations routinely, without public attention, before swift passage by the full council.”
“Americare has a long and well documented history of improperly billing the state and generally failing to follow federal and state law. Most disturbingly, Americare is well known to have routinely put its patients at risk in order to reap financial rewards,” Benjamin Taylor, a senior staff attorney at New York Legal Assistance Group, wrote state officials this week. Taylor’s points and his request that Americare’s expanded license be denied will likely be rejected.
Taylor’s group sued Americare and several other home health agencies in 2011 on behalf of bedridden elderly – including Holocaust survivors – who were denied home care without proper (or any) notice when changes in the state’s method of reimbursement for their care meant that caring for them had become less profitable or unfrofitable.
Americare settled that suit and promised to follow rules meant to protect the frail and elderly.
However, the New York Legal Assistance Group says problems still exist.
Americare wants an unrestricted license in 14 counties, including all of New York City.
It now has a restricted license – itself arguably a shame on the State of New York – to care for people with mental illness or developmental disabilities.
The Times reports that a similar request last year by another home healthcare agency with a checkered record, Excellent, was deferred after objections were raised. But Excellent’s application is on today’s agenda along with Americare’s.
A federal whistle-blower suit by Americare’s former director of quality improvement, Patricia Mooney, claims Americare systematically altered medical records to justify unnecessary home care services.
Americare filed motions to have Mooney’s lawsuit dismissed. Last year, a federal judge denied them all.
In October another former Americare employee, Mendel Coen, accused the company’s chief operating officer, Faivish Pewzner, a Chabad hasid, of forcing him to join him on regular trips to Atlantic City where Pewzner “binged on gambling, illegal drugs and illicit sex” at Americare’s expense. Coen – Americare’s former Supervisor of Patient Relations – alleges that Pewzner forced him to arrange for his prostitutes, grew angry when Coen would not join him in the sex, and sexually assaulted Coen while Coen was sleeping.
“Mr. Coen’s allegations of harassment, retaliation and wrongful termination are without merit,” Nicholas W. Sarris, a lawyer who represents Americare, Mr. Kleinman and Mr. Pewzner, told the Times in an email. He also claimed that Coen has a history of making false, defamatory statements about his clients in anonymous Internet postings. “Mr. Coen is a disgruntled former employee who was terminated for just cause,” Sarris continued.
But findings by the federal Equal Employment Opportunity Commission – which investigated Coen’s complaints before he was fired – supported his Coen’s claims. The Commission reportedly wrote that it had “obtained ample evidence that the sex-related events did occur, over a period of many months.” When Coen complained to Kleinman about Pewzner in front of witnesses, he was fired, the commission found.
Sarris “was dismissive of the settlements Americare paid in other cases,” the Times added.
“Just to put it in perspective, the settlement amount was less than 4 percent of Americare’s revenue during the period,” Sarris claimed, insisting that the settlement was made only to avoid litigation.
Richard S. Harrow, a former regional director of the New York State Attorney General’s Medicaid Fraud Control Unit, who handled the settlement, was dismissive of Sarris’ claims.
“No one’s going to pay you seven million bucks unless you put their feet to the fire,” Harrow reportedly said.
Related Posts:
Elly Kleinman and Americare 1, 2.
NY State Pols Pal Around And Pose For Pictures With Disgraced Haredi Healthcare Executive.
Top Chabad Healthcare Exec “Pervert” Who Uses Drugs, Has Sex With Hookers And Gambles, Suit Claims.
[Hat Tip: Devorah.]
Americare isn't the first company to defraud Medicare and won't be the last. The continuing misdeeds of the Haredi are as much a reflection of the corruption in New York State politics as they are of the Haredi community. Too many people keep looking the other way and not enough people are being given stiff jail sentences. The Feds aren't much better. Did anyone go to jail because of the Haredi E-rate scandal that was news in 2013?
If you want to read about a huge Medicare scandal, go here: http://en.wikipedia.org/wiki/Tenet_Healthcare
Posted by: rocky | January 30, 2014 at 11:27 AM
But all is well with Kleinman since he's paid off the Lakewood mafia (aka Kotlers) with a campus in his own name and honor. He also has sexual skeletons in his closet that everyone knows about, as well as his son who ran off with another married woman. And despite it all he is honored in shul, honored at dinners and sits on the board of BMG. Disgusting pig.
Posted by: Account Deleted | January 30, 2014 at 12:02 PM
Can someone explain to me how any one of these (much less all) frauds is not criminal behavior and prosecuted? Why do the feds always just settle these things for money while leaving the perpetrators off the hook criminally?
Posted by: Account Deleted | January 30, 2014 at 12:07 PM
Has anyone else heard that Eli Kleinman"s wife caught him with his Puerto Rican girlfriend - who is pregnant with Eli"s baby (she is 20 years old ), and subsequently was thrown out of the big mansion on bedford and ave m ?
He's now living with his mother.
The gf tried to blackmail Eli and Eli called her bluff and she blew the whistle (pun intended ).
Posted by: Primetrades | January 30, 2014 at 12:17 PM
Like father like son. His son - a so called rebbe was caught having an affair with a married woman working at manhattan beach yeshiva. His wife would not take a divorce so he left and moved in with this woman while both of them were married to other people, Major scandal in Flatbush and the Catskills. But he has no problem marching down Forest Avenue in Lakewood dancing with his new sefer torah inside the Kleinman Campus of BMG.
Posted by: Account Deleted | January 30, 2014 at 12:32 PM
His son teaches in yeshiva manhattan beach ?
What's his sons name ?
Posted by: Primetrades | January 30, 2014 at 12:53 PM
@Typepadder – Agreed – Imposing fines is a joke for such serious criminal behaviors. Where is the District Attorney ?
Also, am I to understand that in New York State any Tom, Dick or Shlomo with no medical or nursing credentials can get themselves licensed to go into the home health care business?
Posted by: Allan | January 30, 2014 at 12:56 PM
Allan-- DOn't be so naive. NOBODY gets into this bsiness unless he is well connected. If you don't believe me, try to by a nursing home and let's see what happens.
Posted by: Rodin | January 30, 2014 at 03:39 PM
Has anyone else heard that Eli Kleinman"s wife caught him with his Puerto Rican girlfriend - who is pregnant with Eli"s baby (she is 20 years old ), and subsequently was thrown out of the big mansion on bedford and ave m ?
He's now living with his mother.
The gf tried to blackmail Eli and Eli called her bluff and she blew the whistle (pun intended ).
Posted by: Primetrades | January 30, 2014 at 12:17 PM
Like father like son. His son - a so called rebbe was caught having an affair with a married woman working at manhattan beach yeshiva. His wife would not take a divorce so he left and moved in with this woman while both of them were married to other people, Major scandal in Flatbush and the Catskills. But he has no problem marching down Forest Avenue in Lakewood dancing with his new sefer torah inside the Kleinman Campus of BMG.
Strange that the NY POST and NY Daily News havent picked up on this! This is their cup of tea! Look what theyre doing to Curtis Sliwa and Melinda Katz....hee hee... Where are they on this story?
Posted by: IRRELIGIOUS.CRIMINALS.OK? | January 30, 2014 at 05:20 PM
Maybe New York State does not have enough beds for all the people who want long term care or whoever this guy's company serves, so the State will license anyone. There need to be more LTC providers in any case, then there will be more competition and hopefully better quality - of course, people are either going to pay for decent care or crummy care. And, there is no good care, other than what a caring family can provide in a home setting. It's hard being old and/or being mentally impaired.
Posted by: bxpansive | January 30, 2014 at 06:10 PM
The nursing home business in New York State is a "pay to play" game, and only the very wealthy and very connected can afford to get into the game.
The nursing home business is extremely corrupt in New York State and has been so for many years.
Ditto for the Ambulance business, and any of the other businesses that feed into nursing home care.
And to top it all off, Satmar and other Chassidim are a majority in these businesses, and with their business ethics and less than honest business practices, they make the playing field unequal and impossible for anyone honest.
Posted by: Abracadabra | January 30, 2014 at 08:28 PM
Law enforcement in the United States is primarily the responsibility of local police and sheriff's departments, with state police providing broader services. Federal agencies such as the Federal Bureau of Investigation (FBI) and the U.S. Marshals Service have specialized duties.
new york legal assistance
http://www.LawHelpNY.org
Posted by: Jason Marks | March 19, 2014 at 08:41 AM
Whats the update on Eli's Kleinman's marriage, one year later?
Posted by: dowhatyouwant | April 19, 2015 at 10:15 PM