New York Attorney General Letitia James announced a settlement with Maranatha Human Services, Inc. (Maranatha), a not-for-profit organization that provides Medicaid services to people with developmental disabilities in New York. The agreement resolves claims brought by the state and federal government in a qui tam action initiated by a former employee against Maranatha and Henry A. Coley, the organization’s former chief executive officer. Maranatha committed Medicaid fraud, violating the New York False Claims Act by knowingly submitting false reports of its costs to the New York State Department of Health (DOH), falsely claiming reimbursement for millions of dollars Maranatha spent on salaries and contractor fees. These funds were used to enrich Coley, his family and friends, and to support side businesses he controlled — not for the provision of Medicaid services.
