Port Chester's 4J's Transportation Settles Medicaid Complaint for $400,000

Port Chester-based 4J’s Transportation, Inc. will pay $400,000 to settle a Medicaid complaint that the company was billing the health care agency for “services that were not supported by documentation,” New York Attorney General Eric Schneiderman announced Monday.

Under the terms of the settlement, the Westchester transportation company and its owner, James Herring, will repay Medicaid $316,991 for unsupported billings, together with $84,072 in interest.

“Providers must be able to properly document services for which they received payment from Medicaid,” said Schneiderman in a statement. “Doing otherwise drains Medicaid of precious resources, and my office will steadfastly guard New York taxpayer dollars expended to ensure quality care to those most in need.”

The investigation, which was conducted by the Attorney General’s Medicaid Fraud Control Unit, revealed that the company billed for the undocumented services from January 2005 through August 2011.

To deter Medicaid fraud, Medicaid requires its health care providers to document and maintain records which establish the nature and extent of the services for which they bill Medicaid.

Representing the state in the case was Special Assistant Attorney General Anne Jardine, the Regional Director of the Pearl River Regional Office of the Attorney General’s Medicaid Fraud Control Unit.

The case was investigated by Principal Special Auditor Investigator Lora Pomponio, Special Auditor Investigator Christopher Giacoia and Senior Special Investigator Frank DiChiaro, with the assistance of Regional Chief Auditor John Regan, Supervising Investigator Peter Markiewicz and Deputy Chief Investigator Kenneth Morgan.

The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.