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Collateral Consequences

If you are targeted for a medicaid fraud investigation by the Human Resources Adminstration, there are variuos collateral consequences to consider.

Exposure to Neighbors

Once a medicaid fraud investigaiton has been commenced, investigators from the HRA can reach out to your neighbors to find out where you and your children live. They will be asking how long you have lived at the location? Who lives there with you? How many people live in the household?

Exposure to Co-Workers and Employers

Once a medicaid fraud investigaiton has been commenced, investigators from HRA can issue payrol inquiry forms and reach out to your employers to determine how much you are paid, when you are paid and the terms of your wages.

Exposure to Bank Staff

Once a medicaid fraud investigaiton has been commenced, investigators from HRA will reach out to the local banks and determine the highest balance you had for a set period of time.

Exposure to Children’s Schools

Once a medicaid fraud investigation has commenced investigators will check school enrollment to determine whether your child goes to school in the county in which they claimed residence. Also this comes up in situations where parents have children enrolled in school but reside a distance away and there is a conflict with the address initially listed on the medicaid applications. Also, if your children go to religious or private schooll the source of tuition will be an issue that will be looked at.

Civil Proseuction, Subpoena, Discovery & Civil Judgements

If you are sued for improperly recieving medicaid benefits, a civil lawsuit will be filed in the local civil or supreme court. You will be personaly served with a summons and complaint. In the course of litigation, you will be subject to all of the discovery devices in the CPLR. The CPLR can require you to provide any and all financial documents. Your banks, credit card companies, employer and landlords will all be subject to subpoenas. Not only is the lawsuit and the file public record, in the event you do not prevail you will be subject to a civil judgement. With a civil judgement, the judgement creditor will be able to:

a) enforce the garnishment of wages and or bank accounts,
b) enforce a lien, seizure and/or sale of real property and/or personal property, including automobiles,
c) the suspension of motor vehicle registration, and/or driver’s license, if the underlying claim is based on the judgment debtor’s ownership or operation of a motor vehicle,
d) the revocation, suspension, or denial of renewal of any applicable business license or permit,
e) the commencement of an investigation and prosecution by the State Attorney General for fraudulent or illegal business practices

HRA will be able to collect interest on the civil judgement, the current interest rates are as follows:

Per Year – 9%

Monthly Interest Rate – 0.75%

Weekly Interest Rate – 0.13%

Criminal Prosecution

If you are criminal prosecuted for medicaid and/or welfare fraud there are various collateral consequences

  • Public records, the criminal prosecution will be made public and individuals can see that you have been prosecuted.
  • Potential criminal record
  • Potential fine and mandatory surcharge
  • Restitution
  • Criminal Record
  • Probation
  • Parole
  • Jail Term (1 year or less)
  • Prison Term (1 year or more)
  • Deportation and/or other immigration consequences
  • A felony conviction prevents you from exercising the right to vote
  • A felony conviciton prohibits the future purchase of firearms
  • A felony conviction prevents you from exercising the right to sit on a jury
  • A felony conviction bars you from federally funded housing
  • A felony conviction bars you from certain operator licenses
  • A felony conviction prohibit you from participating in the welfare program

If you have any questions regarding a potential or current medicaid fraud investigaiton call our office 24/7 at (212) 300-5196.



Questions? Contact us today.

If you are the target of a medicaid fraud investigation, call our office 24/7 for a free consultation. We have offices in Brooklyn, Manhattan and Queens.

(212) 300-5196 or info@spodeklawgroup.com