Medicaid fraud leads to prison sentence

Following a conviction on grand larceny and healthcare-related fraud charges earlier this month, a Baldwin man was sentenced to seven to 21 years in state prison and pay a $1.7 million fine, New York State Attorney General Eric T. Schneiderman announced last week.

Humphrey Udeh, 43, defrauded Medicaid of more than $1 million bewtween January 2010 and September 2012, Schneiderman said. Udeh billed the state for more than 3,000 units of a highly-specialized and expensive liquid pediatric nutritional formula, when he actually dispensed over-the-counter nutritional supplement formulas, according to Schneiderman. New York State Supreme Court Acting Justice John G. Ingram presided over Udeh’s jury trial in Supreme Court, Kings County, and announced his sentence on July 20.

The Attorney General’s investigation found that, between January 2010 and September 2012, Advanced Medical Supply, which is owned by Udeh and located in Crown Heights, fraudulently received funds from Medicaid and HealthFirst, a Medicaid Managed Care Organization, for dispensing a high-priced liquid pediatric formula to Medicaid recipients who cannot chew or swallow food, and must obtain nutrients via a feeding tube. In reality, Udeh dispensed an over-the-counter formula, Pediasure, which is much cheaper than the specialized formula he falsely claimed to be providing.

“This defendant had a formula for fraud, filing inflated claims for nutrition designed to help needy children with rare illnesses,” Schneiderman said. “The scam drained over a million dollars of taxpayer money, ultimately hurting our most vulnerable and neediest citizens.  This sentencing makes it clear: Those who defraud Medicaid will face justice.”

The investigation revealed that, in order to perpetuate the scam, Udeh utilized generic prescriptions of pediatric formula and false letters of medical necessity, obtained by employees of Advanced Medical Supply from unsuspecting physician and medical facilities. He used the generic prescriptions and false letters to support his fraudulent claims.

Co-Defendant Keva Johnson also pled guilty to crimes relating to the false billing scheme.

In addition to the $1.7 million fine imposed by the court, an asset forfeiture and civil lawsuit brought by the Civil Enforcement Division of the Medicaid Fraud Control Unit is pending against Humphrey Udeh and other defendants.