DOJ sues New York for failing to stop fraud, as part of Trump administration’s crackdown

WASHINGTON (TNND) — New York is just the latest stop for the Trump administration’s crackdown on fraud.

In a lawsuit against the state of New York, the DOJ argues the company Public Partnerships LLC “was preselected as the winner through a sham bid process” (TNND)

In a new lawsuit, the Justice Department is blaming Governor Kathy Hochul’s Adminsitration for failing to take action to stop fraud in a home healthcare program used by more than 250,000 New Yorkers.

In a lawsuit against the state of New York, the DOJ argues the company Public Partnerships LLC “was preselected as the winner through a sham bid process”

PPL is also accused of “Making false statements and misrepresentations about its staffing and financial readiness,” and adding ” hundreds of millions of dollars of additional costs on the Medicaid program that were paid for by federal funds.

At a campaign event in Long Island, New York, Vice President JD Vance spoke about the lawsuit.

“You do not want your government facilitating fraud; you want your government fighting against fraud,” he said. “You know what these fraudsters are doing? They’re taking advantage of American generosity to enrich themselves,” he added.

In the lawsuit, the defendants are named as Public Partnerships LLC (PPL), Commissioner of the New York State Department of Health Dr. James McDonald, and state Medicaid Director Amir Bassiri.

Center for Medicare and Medicaid Services Administrator Dr. Mehmet Oz has, for months, insisted home health aide programs are being abused.

In a February 25 interview with The National New Desk, Dr. Oz said, “It’s the number one job, more than retail in some states, and you’re employing hundreds of thousands of people; we’re paying for the kinds of services your family would normally offer to you – balancing your checking account, carrying the groceries upstairs. Why are you you’re gonna hire a child to do those things? I don’t know if you actually need him to do those things. He’s getting paid that money; therefore can go back to the family unit. That’s not smart way of running a social system,” he said.

Critics, though, are raising concerns about how rapidly funds have been cut off around the country, to the detriment of people who rely on the services and the businesses that provide them.

The Washington Post reported Monday on legitimate small businesses that have been swept up and become collateral damage as part of the crackdown.

Public Partnerships LLC has already responded to the DOJ lawsuit, arguing it was chosen for its role through a transparent, competitive process in a statement to the Associated Press, adding, “We strongly disagree with the characterizations in the complaint and will respond fully through the appropriate legal process.”