DOJ filed a federal lawsuit alleging fraud involving New York’s Consumer Directed Personal Assistant Program (CDPAP). The complaint alleges a contractor received the contract through a sham bid process and that defendants misled officials and misused program funds.

The U.S. Department of Justice announced it filed a lawsuit in federal court to stop ongoing alleged Medicaid fraud tied to New York’s $10 billion home-care program. The government’s complaint targets New York state health officials and a contractor, focusing on alleged misconduct connected to the Consumer Directed Personal Assistant Program (CDPAP). DOJ alleges the contract was awarded using a sham bid process—an allegation that, if proven, would indicate the procurement process itself was manipulated rather than conducted competitively and in good faith. Beyond procurement, DOJ says defendants allegedly misled the legislature and the public, and that they allowed misuse of program funds. The enforcement push matters because Medicaid home-care services directly affect vulnerable patients and caregivers, and fraud can drain state resources while undermining service delivery. While not a traditional “consumer scam,” the case mirrors scam dynamics: representations used to obtain or maintain access to funds, procedural shortcuts or deception that bypass safeguards, and misuse of money intended for care. DOJ’s action signals increased scrutiny around state contractor compliance and procurement representations in large benefit programs. The lawsuit seeks to halt the alleged fraud and protect the integrity of the program’s funding and administration.