Selected Reports issued by the Office of the State Comptroller during the week ending December 11, 2015
Click on text highlighted in color to access the full report
Former pharmacist pleads guilty in $232,000 fake prescriptions scam involving Medicaid and the New York State Health Insurance Program (NYSHIP)
Former pharmacist pleads guilty in $232,000 fake prescriptions scam involving Medicaid and the New York State Health Insurance Program (NYSHIP)
A former Long Island pharmacist admitted today he faked prescriptions to steal $232,000 in a fraud that was uncovered in two audits*by State Comptroller Thomas P. DiNapoli’s office.
The Comptroller reports that William Davis, the former owner of Davis Ethical Pharmacy in Rockville Centre, pleaded guilty to grand larceny in the second degree in Nassau County District Court for sending phony prescription records for reimbursement to Medicaid and the New York State Health Insurance Program (NYSHIP) from 2008 through 2011.
Davis, who currently resides in Lake Ariel, Pennsylvania, agreed to make full restitution of $231,919 on or before his sentencing on January 27.
The improper payments were exposed when the Comptroller examined around $7 million in claims paid to Davis. NYSHIP provides health insurance to some state and local government and school district employees and their families. The state Medicaid Program provides prescription drug coverage for enrollees.
* To read the two audit reports, visit: http://www.osc.state.ny.us/audits/allaudits/093013/12s11.pdfand http://www.osc.state.ny.us/audits/allaudits/093013/12s10.pdf
Halfmoon Town Supervisor Sentenced to 12 months in prison
Former Halfmoon Town Supervisor Melinda Wormuth was sentenced to one year and one day in prison as a result of her convictions for extortion and making a false statement, announced State Comptroller Thomas P. DiNapoli and United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
http://www.osc.state.ny.us/press/releases/dec15/121015b.htm?utm_source=weeklynews20151213&utm_medium=email&utm_campaign=121015brelease
New York State Comptroller Thomas P. DiNapoli published the following audits:
New York State Comptroller Thomas P. DiNapoli published the following audits:
State Education Department: United Cerebral Palsy Association – Rochester area: compliance with reimbursable cost manual
For the year ended Dec. 31, 2013, auditors identified $6,634 in costs charged to special education programs that did not comply with SED’s requirements for reimbursement. Auditors also questioned the appropriateness of $1,544 in costs for consultant services that did not comply with bidding requirements.
New York City Department of Finance: Controls and Accountability of Court, Trust and Bail Funds
An initial audit issued in April 2014, determined that NYC Department of Finance’s Court Assets Department could not accurately account for court, trust and bail funds. The department also could not demonstrate that it applied the full, correct amount of interest to the Court and Trust accounts. In a follow-up, auditors found Finance officials have made progress in correcting each of the problems identified in the earlier report. Of the eight recommendations prior recommendations six were implemented and two were partially implemented.
United HealthCare Insurance Company of New York: Empire Plan Drug Rebate Revenue
An audit report, issued in September 2014, identified $694,227 in drug rebate and discount revenue that was not credited to the Department of Civil Service for the period Jan. 1, 2010 through Dec. 31, 2012. Auditors recommended that UHC remit to the department the $694,227 in rebate and discount revenue identified by the audit, and fully comply with contract provisions that require timely audit access to all documents and information deemed necessary. In a follow-up report, auditors found UHC officials made some progress in implementing the recommendations made in the initial audit report, including remitting $670,470 in additional drug rebate and discount revenue to the department.
http://osc.state.ny.us/audits/allaudits/093016/15f23.pdf
Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at investigations@osc.state.ny.us, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 14th Floor, 110 State St., Albany, NY 12236. Review prior cases at http://www.osc.state.ny.us/investigations/index.htm.