Federal prosecutors filed civil charges Tuesday against a nonprofit network of New York City drug-treatment centers, accusing it of operating a kickback scheme that bilked tens of millions of dollars from Medicaid, Reuters reports. The U.S. case against Narco Freedom comes days after New York State leveled criminal charges against the Bronx-based charity's executive director, Alan Brand, and his son, Jason Brand, alleging separate fraud schemes.
The Manhattan U.S. Attorney's office said Narco Freedom required clients at its 10 treatment facilities to sign up for the organization's outpatient programs, then billed Medicaid for the services. The nonprofit receives nearly $40-million a year in Medicaid reimbursements and state funds, according to state officials. The Brands pleaded not guilty to the criminal counts, and their lawyers said they will fight the federal charges.