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New York charges Narco Freedom executives in alleged Medicaid fraud scheme

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at March 19, 2015

(Reuters) – Leaders of a Bronx nonprofit that provides drug and alcohol treatment to tens of thousands of New Yorkers have been indicted over an alleged scheme to plunder the charity and defraud Medicaid of more than $27 million, New York Attorney General Eric Schneiderman said.

The indictment announced Wednesday expands Schneiderman’s criminal case announced last October against Narco Freedom Inc, its founder Alan Brand and his son Jason Brand.

It also adds new criminal charges against the nonprofit’s chief executive, Gerald Bethea, Controller Richard Gross, Alan Brand’s son Jonathan Brand and employee John Cornachio.

Schneiderman said Narco Freedom cheated Medicaid by submitting claims for excessive services, operating unregulated treatment programs and coercing patients who live in its Freedom Houses to remain in treatment.

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