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Case Number: 1:20-cr-00199-KMW
Judge: Kimba M. Wood
Court: United States District Court for the Southern District of New York (Manhattan County)
Plaintiff's Attorney: United States Attorney’s Office in New York City
Description: New York, New York criminal defense lawyer represented Defendant charged with leading a sprawling scheme to defraud Medicaid of millions of dollars through the billing of fraudulent transportation claims.
From August 2017 to February 2020, KJ Transportation C Services Inc. (“KJ”) was paid more than $20 million for providing transportation services for Medicaid enrollees in the New York City area. A large volume of those claims were fraudulent. In some instances, the Medicaid recipient was deceased or out of the country when KJ claimed it was transporting that person to medical appointments. In other instances, the company used stolen identities, whereby the Medicaid recipient had never heard of KJ and had never taken any rides with the company. In other instances, the Medicaid recipients had received unlawful kickbacks from defendants in exchange for either providing KJ their Medicaid information or for fraudulently scheduling trips they did not take.
Julio Alvarado, who supervised more than a dozen other participants in the scheme, was responsible for billing more than $8 million in fraudulent trip claims.
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In addition to the prison term, ALVARADO, 63, of Yonkers, New York, was sentenced to three years of supervised release and ordered to pay $8,507,115 in restitution and to forfeit $8,507,115.
Mr. Williams praised the outstanding work of Homeland Security Investigations and the United States Department of Health and Human Services’ Office of Inspector General. He also thanked the Office of the Medicaid Inspector General for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kedar S. Bhatia and Brandon D. Harper are in charge of the prosecution.
18:1347.F HEALTH CARE FRAUD
Outcome: Defendant was sentenced to 95 months in prison.