You are here:HomeIssuesFraud2013Group to Help Maryland Establish Exchanges Settled with Feds on Fraud

Group to Help Maryland Establish Exchanges Settled with Feds on Fraud

An organization that was chosen by the Maryland Health Benefit Exchange to help the state-instituted agency implement the online insurance exchange required under federal healthcare reform, admitted to defrauding the U.S. government...
May 7, 2013

An organization that was chosen by the Maryland Health Benefit Exchange to help the state-instituted agency implement the online insurance exchange, required under federal healthcare reform, admitted to defrauding the U.S. government. Maryland tapped the nonprofit Seedco to help implement healthcare reform despite a $1.7 million settlement the agency agreed to in December to resolve a federal fraud suit.

According to a report in the Baltimore Sun, the U.S. government sued the agency, saying it defrauded a federal employment program by falsely saying it found jobs for hundreds of New Yorkers. As part of the agreement, Seedco admitted to the false reporting. Seedco (Structured Employment Economic Development Corp.) is based in New York and has a Maryland office. Five other organizations will share in a $24 million federal grant as part of the healthcare reform education process in Maryland.

In the New York suit, Seedco was accused of saying it found employment for job seekers who were still unemployed or had found jobs on their own, according to the U.S. attorney’s office in Manhattan. It said Seedco used the inflated numbers to get increased federal funding and as support to open a job placement center. As part of the settlement, Seedco was ordered to institute a compliance program, create an internal fraud hot line and hire an independent consultant to perform annual reviews of the compliance program. A Seedco executive called the New York incident an isolated event in just one of the nearly two dozen programs the organization operates.

Group Settled With Feds over Fraud (Baltimore Sun 5/3/13)