SUD Treatment Provider, Former CEO to Pay $6M for Medicaid Fraud

The former founder and CEO of a New York-based addiction treatment facility has agreed to reimburse the state Medicaid program $3 million, according to Attorney General Letitia James. 

The agreement comes after Stephen Yohay admitted to taking part in a false Medicaid billing scheme, according to a press release announcing the news. The fraud occurred at Yohay’s company, Addiction Care Interventions Chemical Dependency Treatment (ACI), which will also pay $3 million. 

Based in New York City, ACI is an inpatient drug treatment center that offers a variety of substance use disorder (SUD) treatment services.


ACI and Yohay admitted to “many instances of deceitful and fraudulent behavior,” according to James. Some examples include paying employees for work they never performed; bribing homeless Medicaid beneficiaries into treatment; and forging signatures from medical providers to make it look like patients had received evaluations from health care professionals when they had not.

As part of the deal with the AG’s office, ACI’s owners — Yohay and his brother — must divest their ownership interests in the company. Additionally, Yohay is banned from participating as a provider in any government-funded health care program for 15 years.

A former employee and whistleblower brought the suit forward and will receive a portion of the $6 million payment.


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