Maranatha agrees to shut down in whistleblower’s $2.4M Medicaid fraud case

Maranatha Human Services Inc., a Poughkeepsie nonprofit that provides housing and rehabilitation services to people with developmental disabilities, has agreed to pay New York and the federal government at least $850,000 for Medicaid fraud and then shut down operations.

U.S. District Court Judge Kenneth M. Karas approved state and federal settlements on Aug. 31. The lawsuit was filed as a whistleblower case four years ago and kept secret until last November, when the founder, Henry Alfonso Coley, agreed to pay back $220,000 in ill-gotten gains to the state and feds.

Coley founded Maranatha in 1988 as a non-profit corporation and funded it almost entirely with Medicaid payments.

The whistleblower, former chief operating officer Stephanie Munford, accused Coley of using Medicaid funds to pay for pet projects, low-show or no-show jobs, personal expenses, and consulting contracts to himself and his family and his friends.

Source: Maranatha agrees to shut down in whistleblower’s $2.4M Medicaid fraud case / westfaironline.com

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