ATTORNEY GENERAL CUOMO ANNOUNCES ARRESTS IN MULTI- MILLION DOLLAR MEDICAID FRAUD SCHEME RUN OUT OF THREE NEW YORK CITY DENTAL CLINICS Defendants Allegedly Stole $5.7 Million From Medicaid Fund
NEW YORK, N.Y. (June 2, 2010) The xxxx and xxxx paid recruiters, known as “flyer boys”, to bring Medicaid recipients to the clinics, and paid the recipients to get treatment, whether medically necessary or not. The Medicaid recipients were sometimes brought to the clinics from homeless shelters, and were paid cash as well as gifts such as CD players and McDonald’s gift certificates. In terms of the “flyer boys,” the more Medicaid recipients they brought in, the higher the pay.
The operation employed dozens of dentists who were often required to pay two thirds of their Medicaid billings to the defendants. It is alleged that xxxx, a high-billing dentist in the clinics, actively exhorted the flyer- boys “to go out and get more patients.”