The Department of Justice filed a federal lawsuit to halt an alleged Medicaid fraud scheme involving New York’s CDPAP. DOJ claims the conduct mismanaged billing and profits in ways that increased unauthorized revenue.

The U.S. Department of Justice announced it filed a federal lawsuit seeking to stop alleged Medicaid fraud tied to New York’s Consumer Directed Personal Assistant Program (CDPAP), described as a major home-care benefit program. DOJ’s action focuses on conduct that allegedly resulted in misuse of federally funded Medicaid benefits and inflated unauthorized revenue. According to the DOJ announcement, the lawsuit accuses named entities and individuals of improperly managing aspects related to billing and profit handling connected to CDPAP operations. DOJ frames the case as an effort to prevent ongoing harm and to address alleged financial gains derived from unlawful program administration. Because Medicaid is a federally funded benefit, DOJ’s civil enforcement approach is positioned to both halt continuing violations and pursue remedies intended to address the scope of the alleged misconduct. The complaint’s central theme is misuse of billing systems and mismanagement practices—conduct that, if proven, could represent a pattern of fraud against a government benefit program designed to provide care. The lawsuit underscores how home-care payment programs can become targets for schemes that exploit billing processes, administrative weaknesses, and personnel incentives, leading to significant financial harm at scale.