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State Hires Controversial Company

by Fred Mogul

NEW YORK, NY September 21, 2007 —A company recently hired by New York state is under fire from the Connecticut Attorney General’s office. WNYC’s Fred Mogul has more.

Earlier this year, New York awarded Virginia-based Maximus, Incorporated, a 5 year contract to detect Medicaid fraud. This week, Connecticut Attorney General Richard Blumenthal threatened to sue Maximus, for taking more than $6 million but failing to upgrade an aging law-enforcement database.

In July, the publicly-traded company agreed to pay federal authorities $30 million to resolve a criminal investigation into whether it falsified Medicaid claims prepared for the Washington, DC, city government. Officials at the New York State Comptroller say their office believes Maximus will be able to fulfill its contract. Maximus did not return calls for comment. For WNYC, I’m Fred Mogul.



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