Nassau Man Defrauded $1 Million From Medicaid: Attorney General

A Valley Stream man that owns a Brooklyn-based medical supply business was arraigned on Wednesday with stealing more than $1 million from Medicaid.

According to Attorney General Eric T. Schneiderman, Kester Atumonyogo, 49, and his company Monack Medical Supply, Inc. were charged with billing Medicaid and Healthfirst, a Medicaid managed care organization, for an expensive nutritional formula while supplying patients with a lower-priced substitute and stealing over $1 million in the process.

"New Yorkers pay into Medicaid to meet the healthcare needs of the most vulnerable in our communities," said Schneiderman. "They deserve to know their dollars are going to help people, not profit unscrupulous business owners. We will continue to investigate and prosecute those who steal from our Medicaid programs to enrich themselves with taxpayer dollars."

According to the indictment, Atumonyogo used a fraudulent social security number to enroll Monack as a Medicaid-participating provider of medical supplies. The company then allegedly filed false claims to Medicaid and Healthfirst that Monack had dispensed to pediatric patients a highly specialized and expensive enteral nutritional formula, which is prescribed by physicians for patients who must obtain nutrients via a feeding tube and cannot metabolize dietary nutrients from food.

According to Schneiderman, the investigation revealed that Medicaid and Healthfirst paid Monack for the specialized formula, although Monack only dispensed Pediasure or similar over-the-counter nutritional supplements, and at times administered nothing at all. The Medicaid reimbursement rate for specialized enteral nutritional formula is substantially higher than off-the-shelf or over-the-counter nutritional supplements.

In total, Atumonyogo and Monack allegedly stole more than $1 million from the Medicaid program.

The investigation also uncovered that Atumonyogo allegedly used two different dates of birth and claimed to have been born in two different countries. Using that false identifying information, Atumonyogo allegedly obtained two different social security numbers that he has used interchangeably since the 1990’s. According to prosecutors, he used the second social security number he obtained to enroll Monack in the Medicaid program.

Prosecutors also allege that Atumonyogo used a different social security number in 2006 to obtain welfare benefits, and that in October 2012 and September 2013 Atumonyogo filed false income verifications with the New York City Human Resources Administration, claiming that he only made $200 or less per week. The Attorney General’s investigation revealed that between March 1, 2012 and Dec. 31, 2014, Atumonyogo received at least $575,806.88 from Monack.

Atumonyogo was charged with first-degree health care fraud, three counts of second-degree grand larceny, third-degree welfare fraud and two counts of first-degree offering a false instrument for filing. If convicted, he could serve up to 25 years in jail.

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