Guilty Plea to Medicaid Fraud Given by Home Care Providers

ALBANY — Two operators of a Brooklyn-based home care services agency have pleaded guilty in a $12 million Medicaid fraud scheme, Attorney General Andrew Cuomo announced yesterday.

The operators of Immediate Home Care Inc., were charged with stealing from Medicaid by employing unqualified, uncertified home health aides. Medicaid was also billed for services that weren't provided.

Nachem Singer, 43, pleaded guilty yesterday to third-degree grand larceny and Ervin Rubenstein, 43, pleaded guilty to fourth-degree grand larceny. In a separate plea, their company pleaded guilty to second-degree grand larceny and was ordered to pay $12.5 million in restitution.

The convictions stem from "Operation Home Alone," the state's industry-wide crackdown on fraudulent Medicaid home care providers.

Immediate Home Care was licensed in 1994 to provide home care services and its revenues increased from about $3 million to more than $52 million between 2003 and 2006. The agency has employed at least 2,000 people, including 10 who have been convicted of working with phony certifications.

The agency also recruited aides from training facilities where false certifications could be purchased with little or no training provided. Medicaid requires home health care aides to successfully complete a training program licensed by the state. All aides must receive a minimum of 75 hours of training, including 16 hours of supervised training by a registered nurse.

Last week, Mr. Cuomo announced that two New York City women , Mary Smalls and Laurette Escarment, pleaded guilty to supplying hundreds of home health aides with bogus credentials.