January 17, 2007

County Probe Uncovers Medicaid Abuse

Lido Beach man arrested on Grand Larceny charge after bilking Medicaid for tens of thousands of dollars while reporting $150,000 income

Mineola, N.Y. – Nassau County Executive Thomas R. Suozzi, joined by Police Commissioner James Lawrence, today announced the arrest of a Lido Beach man on a Grand Larceny charge for receiving tens of thousands in Medicaid services to which he was not entitled while reporting an income of $150,000 a year and a bank account of more than $400,000 in cash.

Investigators for the Department of Social Services say the man allegedly misrepresented his ability to pay for his own medical expenses on an application for Medicaid benefits. He allegedly received benefits to which he was not entitled between July 2004 and March 2006, police said. After DSS investigators uncovered the fraud and spent months tracing his hidden assets, they then turned the case over the Nassau County Police Department for further investigation on the allegations of fraud and criminal misconduct. The Nassau County Police Department yesterday arrested the individual, Ricky DiBernardo, 44, of 325 Lido Blvd. in Lido Beach, police officials said.

Mr. DiBernardo has been receiving Medicaid benefits since 1995. Investigators say Medicaid has paid more than $420,000 on his behalf during the last 12 years. Police officers arrested Mr. DiBernardo yesterday at his Lido Beach home, charging him with one count of Grand Larceny 2nd Degree, police said. The investigation is ongoing, police said.

“This is a flagrant example of the type of Medicaid fraud and abuse that is still going on in Nassau County,” said Suozzi. “The County’s Department of Social Services and the Nassau County Police Department are committed to doing everything possible to rid the Medicaid program of this type of corruption, which only hurts those who truly deserve Medicaid benefits.”

As part of a proactive operation by the Nassau County Department of Social Services, investigators received information that Mr. DiBernardo had substantial income and assets that would make him ineligible for Medicaid benefits. Among his possessions was a 2003 Hummer, a recently purchased home in Lido Beach and substantial bank accounts.

After a routine background check, the Department of Investigations found that DiBernardo recently purchased a home for $660,000 located at 325 Lido Blvd. in Lido Beach. His mortgage application listed his income as $12,500 a month. The gross amount due from Mr. DiBernardo at closing was $666,663.08. He provided $216,664.08 and received a mortgage of $450,000.

In addition, investigators found that Mr. DiBernardo deposited $334,833.77 in a 21-month period from July 2004 through March 2006, and most of the deposits were made in cash. Further, he made withdrawals totaling $115,840.00 between September 30, 2004 through June 6 2005 and also paid American Express $20,500 to American Express in a 53-day period from August 31, 2004 through October 22, 2004.