Bed-Stuy Home Health Agency Settles Over $3 Million In Fraud Case: AG

BED-STUY, BROOKLYN — A home health agency agreed to settle with state agencies over allegations that the company submitted false Medicaid claims as well as cheated their employees out of $2 million in unpaid wages, the Attorney General's office announced.

In addition to returning unpaid wages to its workers, White Glove also agreed to pay $1.2 million to the state Medicaid program over its false claims, the Attorney General's office said, as well as admit to wrongful conduct.

“Home health aides work tirelessly to provide critical care for our most vulnerable neighbors, and they deserve to receive adequate and fair compensation for their hard work,” said Attorney General Letitia James. “White Glove cheated their employees, and they cheated the everyday New Yorkers whose tax dollars fund the Medicaid program."

Between 2012 and 2018, state and federal authorities say that White Glove routinely underpaid their workers wages required by the New York Wage Parity Act, which sets wage and benefit minimums for state-licensed home care services agencies — $17 an hour in New York City, plus benefits.

Compliance with the law is a requirement for home care service agencies to get Medicaid reimbursement from the state Medicaid program.

The joint state and federal investigation began when a whistleblower filed a complaint with authorities using provisions of the New York and Federal False Claims Act, which allows individuals to report fraud and share in the recovery of funds.

“The arduous work that these aides do, day after day, ensures that some of our most vulnerable neighbors receive the care and are shown the dignity that they deserve,” said United States Attorney Peace. “This settlement — the third in our continuing investigation of certain licensed home care service agencies — reflects this Office’s ongoing commitment to providing home health aides the hard-earned benefits guaranteed them under New York law and the Medicaid program.”

James' office, while marred by scandal, has taken dead aim at nursing homes and home care services in recent months, including a Western New York nursing home and a Queens home care company.