Congress Asked To Seek Special Prosecutor For Multi-Billion Dollar NY Medicaid Fraud By State Employees

Copy of letter sent:
CuomoTARP.blogspot.com                May 23, 2011

To: Eric Holder, US Attorney General,
Darrell Issa, Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; Paul Ryan, Chair House Budget; Harold Rogers, Chair House Appropriations; Kent Conrad, Chair Sen. Budget; Jeff Sessions, Sen. Budget; Daniel K. Inouye,Chair Sen. Appropriations;  Thad Cochran, Sen. Appropriations; Tom Harkin, Chair Sen. Health; Michael B. Enzi, Sen. Health.;  Chris Van Hollen, House Budget;  Spencer Bachus, House Financial Services; Barney Frank, House Financial Services; Max Baucus, Sen. Finance; Chuck Grassley Sen. Finance

Re: Multi-billion dollar fraud: Special Prosecutor required for the Major Criminal Fraud by NY State officials and others taking billions of dollars a year in federal Medicaid funds. Eric Holder and the NY Offices of the US Attorney have failed to prosecute and obtain refunds. Holder has an 18 year history of covering up for Andrew Cuomo when billions of dollars are missing. Congressional oversight of the Justice Department is needed.

Re: Congress must end misappropriations and deduct past fraudulently obtained funds from present appropriations. Block grants would shift policing to the State.

Dear Congress and Eric Holder:

There is a severe problem in NY State, which has four Federal Court districts, and a conflict of interest by lawyers working for the US Justice Department who may wish to move into the NY private sector at more pay.   The Medicaid fraud is reported as a scheme to extract federal Medicaid funds for non Medicaid uses by the State of New York. Such a fraud would involve the highest levels of NYS Government and with the knowledge of the NYS Attorney General, who was Andrew Cuomo. The loss of these fraudulently obtained funds would have a severe effect on NYS finances and could lead to default. Eric Holder's Justice Department has not obtained any cash refunds to the federal government for the frauds reported below.

1. The Times Union reported, "A federal grand jury is continuing to examine allegations that state Health Department managers may have conspired with the Research Foundation for the state University of New York to manipulate audits of New York's $22 billion a year Medicaid program. .... The investigation is centered on a federally mandated program that requires states to randomly audit their Medicaid programs to determine the rate of ineligible recipients of Medicaid benefits. ... Several people who formerly worked for the Research Foundation have alleged that their audits were deliberately sanitized so that New York state would not be penalized for excessive error rates that could have led to New York being penalized or not receiving all or part of approximately $22 billion in federal matching funds.
http://www.timesunion.com/local/article/Were-state-audits-faked-598325.php#ixzz1MeoogW5n

2. "Daily rate for Medicaid patients tops $5,000 in nine institutions in NY and was described as a "cash cow for the State." "Introne, Gov. Andrew Cuomo’s liaison, said state officials were working with the U.S. Centers for Medicare and Medicaid Services “to analyze and resolve the matter."
http://www.poughkeepsiejournal.com/article/20110402/NEWS01/110402002/Daily-rate-for-Medicaid-patients-tops-5-000?odyssey=tab%7Cmostpopular%7Cimg%7CFRONTPAGE

3. It was reported in Wall Street Journal that, "The state spends $700 million a year to house about 1,400 disabled people in the facilities. But it bills Medicaid more than three times that amount. By taking advantage of federal matching funds, the state pockets approximately $1 billion extra every year—and uses it to subsidize other areas of the budget."

http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories

4. $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/ 

5. Was Cuomo MIA With A $1.2 Billion Per Year Fraud?  http://cuomotarp.blogspot.com/2010/09/was-cuomo-mia-with-12-billion-per-year.html

6. An additional $400 million dollars in NY Medicaid fraud and Cuomo MIA  http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-corruption-allowed-400.html 

7. Eric Holder* has known since 1993 of New York State's complicity in defrauding the Federal government since Holder was a US attorney for D.C. and signatory to the "Denoncourt" consent order where New York State paid the U.S. $26.97 Million To settle federal funding fraud.
http://www.justice.gov/opa/pr/Pre_96/December94/725.txt.html 

8. Holder was covering up for Cuomo as Deputy Attorney General for the $17 billion and then $59 billion dollars missing at HUD under Cuomo and his refusal to prosecute despite the recommendation of the the Inspector General and also, the Farkas scandal and the GAO reported HUD mortgage flipping frauds.
http://thekomisarscoop.com/2006/08/fees-for-our-friends-the-scandal-that-taints-andrew-cuomo/
 http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-predatory-heart-of.html
http://www.villagevoice.com/2006-08-29/news/andrew-cuomo-s-2-million-man/

Eric Holder must appoint a Special Prosecutor because of 1. his continuing conflicts and the conflicts of Justice department attorneys ; 2. his failure to act on this continuing crime for 18 years by NYS involving the highest levels of NY State government; and 3. his long history of failing to prosecute crimes involving Andrew Cuomo. The NY offices of the US Attorneys have local conflicts which require a Special Prosecutor without ties to local interests and political figures.

Solutions: 1. Use Medicaid block grants to shift this corruption directly to NY State and eliminate the over twenty years of fraud by NY State in the Medicaid program.

2. Have Eric Holder explain why he has failed to prosecute and obtain refunds, even with a prior   "Denoncourt consent decree" signed by Holder at Justice Department years ago.

3. I and others are ready to help Congress with testimony and data to end this massive fraud within NYS Medicaid and assist in making sure that the proper refunds are made.

Sincerely yours,

CuomoTARP.blogspot.com

*In 1988, Ronald Reagan appointed Holder to serve as a judge of the Superior Court of the District of Columbia. Holder left the bench in 1993 to become US Attorney for the D.C. by Bill Clinton. The Denoncourt action was brought in D.C..  Holder was the US Attorney for D.C. and oversaw the case from 1993 through the settlement order in 1994.  In 1997, Clinton nominated Holder to be the Deputy Attorney General.



P.S. 1. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com
2. Others have reported these frauds in letters to Congress.
3. The need for Block Grants and a bankruptcy for States proposed law were in earlier letters to Congress and available at these links:
http://cuomotarp.blogspot.com/2011/04/three-billion-dollar-medicaid-fraud-by.html
http://cuomotarp.blogspot.com/2011/05/medicaid-block-grants-would-save-ny.html
http://cuomotarp.blogspot.com/2011/01/bankruptcy-cat-is-out-of-bag-and-some.html

Federal Title 18 Crimes committed by NY State Employees and others:

§1035. False statements relating to health care matters
§1031. Major fraud against the United States
§286. Conspiracy to defraud the Government with respect to claims
§287. False, fictitious or fraudulent claims
§1621. Perjury generally
§1622. Subornation of perjury