Nesconset Family Charged In Medicaid Scheme: AG

A Nesconset man and his daughter were arrested on Monday for conducting a Medicaid scheme that resulted in them receiving over $2 million in fake claims, according to Attorney General Eric T. Schneiderman.

Robert H. Corrado, 56, who worked as executive director for Interline Employee Assistance Program Inc., which offered housing to homeless people at below-market rent and his daughter Kristina Corrado, 32, are both accused of being involved in an illegal kickback scheme, according to the attorney general.

Robert, who also owned several three-quarter houses in Queens and Brooklyn, would provide housing at below market rent to homeless clients only if the clients agreed attend treatment at Interline and nowhere else, the attorney general said.

As a result, Robert and his company would receive payments from Medicaid for substance abuse treatment claims predicated on this kickback arrangement, the attorney general said.

His daughter managed Interline’s three-quarter homes, called “Care House” and would monitor the attendance of Care House residents at Interline’s outpatient program and if residents did not fulfill the mandatory treatment requirements at Interline they would by evicted from the Care Houses, the attorney general said.

The overlap in staff and operations between Interline’s outpatient treatment program and its Care Houses is considered illegally due to the fact that it denies patients the freedom of choice in medical care.

As a result, Robert and his daughter worked together with Interline to knowingly submit at least $2,327,524 in fraudulent claims for reimbursement to Medicaid, the attorney general said.

These claims, prosecutors allege, were fraudulent because they resulted from illegal kickbacks, deprived patients of their freedom of choice and were the result of the operation of an unlicensed residential treatment program, the attorney general said.

Robert and Interline were charged with first degree grand larceny.

Robert Corrado and Interline along with Kristina Corrado were also charged with violating the Social Services Law prohibiting the payment of kickbacks related to the provision of services under the State’s Medicaid program.

Interline was also charged with three counts of first degree offering a false instrument for filing and violating the State’s Mental Hygiene Law prohibiting the operation of a residential treatment program without the proper operating certificate.

In addition to the arrest, a civil complaint against Interline, Robert, Kristina, and Kim Corrado, who is Robert's wife was also filed.

The complaint seeks to recover millions of dollars of Medicaid money obtained by the Corrados and Interline as a result of their fraudulent conduct.

Kim has not been criminally charged but is listed on state filings as the sole owner of Interline, and the civil complaint alleges that she also received financial benefits from the fraud.

“We allege that the defendants engaged in a systematic, ongoing scheme to exploit those struggling with homelessness and substance abuse in order to line their own pockets,” Schneiderman said. “Medicaid cannot serve as a bank account for criminals who have no regard for the well-being of their fellow New Yorkers."