Medicaid Fraud Mastermind Stole Over $1M
Posted on Friday, 13 of November , 2009 at 6:57 pm
LONG ISLAND—David Williams, an owner of a now-defunct Long Island medical supply company and said to be the mastermind behind a massive Medicaid fraud scheme, has been sentenced to three to nine years in prison for stealing over $1 million from Medicaid. In addition to incarceration, David Williams is also responsible for paying restitution of over $1.1 million to reimburse the Medicaid program.
David Williams and his wife Cynthia Williams owned People’s Choice Surgical Supplies, Inc., which was the largest medical supply company on Long Island based on its quantity of Medicaid billing. From 2003 to 2006, People’s Choice, David and Cynthia Williams, and two employees falsely billed Medicaid for over $1 million dollars for medical equipment that was not ordered by physicians. Additionally, People’s Choice billed Medicaid for over $50,000 of medical equipment that was never provided to Medicaid recipients.
In order to carry out this scheme, People’s Choice stole the identity information of physicians and submitted false Medicaid claims without the doctors’ knowledge or permission. David Williams also obtained Medicaid recipients’ numbers – sometimes by paying Medicaid recipients cash for their information – and then used those numbers to falsely bill Medicaid for medical equipment products that were not medically necessary, not ordered by a doctor, and in many instances not provided at all. The products included diabetic supplies, diapers, Ensure nutritional supplements, and other items.
Cynthia Williams, two employees, and People’s Choice previously pleaded guilty for their parts in the scheme and most were sentenced earlier this year. Court information for all defendants is as follows:
–David L. Williams, 48, pleaded guilty Friday to second degree grand larceny and was sentenced to 3-9 years in prison. David Williams, Cynthia Williams, and People’s Choice must also pay a combined restitution of over $1.1 million to reimburse the Medicaid program.
–Cynthia A Williams, 46, previously pleaded guilty to third degree grand larceny and was sentenced to six months in jail and five years probation supervision.
–Kenya Gadson, 35, an employee, previously pleaded guilty to petit larceny, a misdemeanor, agreed not to seek employment in the health care field for three years, and was sentenced to three years probation supervision.
–Ramona Wiley, 46, an employee, previously pleaded guilty in Bronx County to petit larceny, for applying for and receiving Medicaid benefits while claiming to have no income, when she was actually receiving income from People’s Choice. She will be sentenced on Dec. 9.
–People’s Choice Surgical Supplies, Inc. previously pleaded guilty to second degree grand larceny and first degree identity theft and was sentenced to a fine of $10,000.
David Williams appeared Friday before Judge William Donnino in Nassau County Court. People’s Choice Surgical Supplies, Inc. was formerly based in Hempstead. It closed in December of 2006. 11-13-09
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Category: Business, Consumers, Courts, Crime, Government, Health, Insurance, New York State
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