- Associated Press - Thursday, April 14, 2016

NEW YORK (AP) - An operator of transitional housing catering to addicts is accused of running a $2 million Medicaid kickback scheme by requiring residents to attend support groups at substance abuse providers.

The New York Times reports (https://nyti.ms/1V3amxo ) that 65-year-old Yury Baumblit and his wife, Rimma, were arrested early Wednesday at their Brooklyn home and arraigned on charges of grand larceny, money laundering and Medicaid fraud.

Prosecutors say the Baumblit forced tenants of so-called three-quarter houses to attend support groups. They say the providers paid companies run by the couple $2 million in Medicaid kickbacks in return.

Defense attorney Justin Feinman says his clients deny the charges. He says they’re victims of a witch hunt.

Bond was set at $500,000 for Baumblit and $300,000 for his wife.

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Information from: The New York Times, https://www.nytimes.com


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