U.S. Gets $50.5M Share in NYC Drug Clinic’s Bankruptcy

A settlement of a Medicaid fraud case originally brought by whistle-blowers against a New York City substance-abuse treatment provider calls for the U.S. to pursue a $50.5 million claim from the now-defunct provider’s bankruptcy proceeding (United States ex rel. Brumfield v. Narco Freedom, S.D.N.Y., 1:12-cv-03674, settlements 7/13/17).

The settlement with Narco Freedom Inc. was one of three announced July 14 by the Justice Department that resolved a False Claims Act case charging the provider and its executives with siphoning off $27 million in Medicaid payments for their own enrichment. The settlements were approved July 13 by Judge John ...