Maranatha Human Services Cheated Medicaid By Illegally Paying CEO
and Family Members for Work That Was Not Medicaid Eligible
NEW YORK – New York Attorney General Letitia James today announced a settlement with Maranatha Human Services, Inc. (Maranatha), a not-for-profit organization that provides Medicaid services to people with developmental disabilities in New York. The agreement resolves claims brought by the state and federal government in a qui tam action initiated by a former employee against Maranatha and Henry A. Coley, the organization’s former chief executive officer. Maranatha committed Medicaid fraud, violating the New York False Claims Act by knowingly submitting false reports of its costs to the New York State Department of Health (DOH), falsely claiming reimbursement for millions of dollars Maranatha spent on salaries and contractor fees. These funds were used to enrich Coley, his family and friends, and to support side businesses he controlled — not for the provision of Medicaid services.
“As a charitable organization and Medicaid Provider, Maranatha was entrusted with public funds to serve a particularly vulnerable population,” said Attorney General James. “Instead, Maranatha diverted these critical funds to benefit its chief executive officer, his family and friends. Self-dealing will not go unchecked in New York. My office is committed to holding Medicaid providers accountable, ensuring the welfare and well-being of all New Yorkers, and protecting the...
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https://ag.ny.gov/press-release/2022/attorney-general-james-secures-850000-di...