WNY Hospital Contractor Convicted of Medicaid Scam

July 19, 2010 Updated Jul 19, 2010 at 1:54 PM EDT

By WKBW Internet

...

WNY Hospital Contractor Convicted of Medicaid Scam

July 19, 2010 Updated Jul 19, 2010 at 1:54 PM EDT

BUFFALO, NY (WKBW/RELEASE) - A Tonawanda Hospital contractor faces up to 7 years in prison after pleading to her involvement in an elaborate Medicaid Scam.

Deborah Kantor, 55 of Tonawanda, NY, is the owner and operator of H.I.S. Holding, Inc., a debt collection agency that serviced Niagara Falls Memorial Medical Center along with other WNY area hospitals.

Kantor and H.I.S. bribed Michael Albrecht, a Niagara County Department of Social Services employee, in exchange for Medicaid client identification numbers and his approval of Medicaid applications that had incomplete or false information.

According to the Attorney General's Office, Kantor and H.I.S. paid more than $17,749 in checks and cash as part of the scheme between 2000 to 2007, including $50 for each active Medicaid client identification that he provided.

By obtaining Medicaid client identification numbers and the approval of sub-standard Medicaid applications, Kantor enabled her hospital clients to unknowingly obtain reimbursement from Medicaid for claims that should not have been paid. She benefited from the scheme by getting a
percentage of the fraudulent reimbursements.

The Attorney General's Office is also seeking recovery of approximately $725,000 from Kantor, which represents the amount of fraudulent Medicaid benefits the State paid as a result of the scheme.

Kantor is scheduled to be sentenced on all charges on August 12. Albrecht previously pleaded guilty to Attempted Bribe Receiving in the Third Degree, a class E felony, and will be sentenced in September.