Oyster Bay Man Gets Prison Time For 'No-Show' Medicaid-Funded Job

An Oyster Bay man was sentenced to prison on Friday for stealing approximately $840,000 from Medicaid by colluding with a nonprofit that provided substance abuse services throughout New York City, according to Attorney General General Eric T. Schneiderman.

John Cornachio, 63, was sentenced to state prison for 2 to 6 years and ordered to pay $840,000 in restitution to the New York State Medicaid Fraud Restitution Fund after he was convicted of second-degree grand larceny.

“Stealing from Medicaid harms both our most vulnerable residents and New York taxpayers," Schneiderman said in a press release. "No matter how sophisticated the scheme, my office will continue to prosecute Medicaid fraud and bring crooks to justice."

Officials say Cornachio colluded with Bronx-based Narco Freedom’s corrupt management and held a “no-show” job within the organization and collected over $500,000 in salary and benefits over a five year period. He used these benefits for health insurance, retirement benefits, a car allowance that allowed him to lease a Land Rover and more, the AG says.

Cornachio also obtained more than $300,000 from Narco Freedom through B&C Management, which was found to be a shell company with no actual business, which submitted fake invoices to Narco Freedom for services it never offered, the AG says.

The AG also filed a civil action suit against Medicaid-funded Narco Freedom Inc. seeking asset forfeiture and other remedies, including treble damages and penalties under the New York State False Claims Act. The legal action stopped Narco Freedom from illegally exploiting the Medicaid program, the AG says.

Narco Freedom acknowledged that it stole from Medicaid and admitted to filing false statements as part of its plea deal. The organization made efforts to deceive and defraud various state agencies, including the New York State Department of Health and the Attorney General’s Charities Bureau, the AG says.

Narco Freedom filed for bankruptcy in January 2016 and a bankruptcy court approved a $118 million settlement to settle the nonprofit’s outstanding government claims. The amount to be recovered in the bankruptcy proceeding is yet to be determined.

Image via Shutterstock