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Former Owner of a Medicaid Firm Who Stole Nursing Home Residents’ Medicaid Applications Money Ordered to Pay $1.6 Million Judgment

Medicaid is a medical assistance program jointly run and funded by states’ and the federal governments. It provides health coverage to designated groups of people based on the eligibilities set forth in the programs. More than 70 million Americans receive Medicaid coverage. The participants include:

  • Low-income adults
  • Children
  • People with disabilities
  • Pregnant woman
  • Elderly people

To be eligible for Medicaid, applicants must meet such requirements as age and income. Individuals who ae children, aged, blind, or disable are automatically eligible for Medicaid. States may expand the provisions and programs provided by federal Medicaid. Under Michigan’s MI Choice program, persons aged 65 and older receive waivers for home and community-based health care services. The program is for individuals who would have needed nursing home care to get the same services in their homes and communities. The healthcare includes vision, dental, medical, and mental health services.

For some elderly people, Medicaid may be their only affordable option for health care treatment and maintenance. The application and approval process may be unknown or difficult to navigate on their own; therefore, elderly persons may rely on businesses that purport to provide services to guide them in obtaining Medicaid. However, as vulnerable members of society, the elderly may fall prey to fraudulent and unscrupulous businesses.

Nissim Aryeh, owner of Advanta Medicaid Specialists, allegedly stole hundreds of thousands of dollars from nursing home residents and their families. The former Medicaid firm, which was located in Lakewood New Jersey, stole the money from individuals who were seeking help with Medicaid applications. The customer paid between $3,000 to $9,000 for the services. When the families reported that they had not receive the promised services nor refunds if the applications were not approved, the state launched an investigation into the firm and the allegations. The investigators said Advanta took over $300,000 from its customers.

In December 2019, a civil lawsuit was filed against Aryeh and his company’s agent Chaim Feller. The charge for the owner and agent was transferring company funds into their personal accounts to spend on their personal expenses. The court found them liable for 131 violations of New Jersey’s consumer protection laws and regulations and ordered them to pay $1.3 million. The judgment amount includes consumer restitution, civil penalties, attorneys’ fees, and investigative costs.

Nursing home mistreatment may occur in the form of abuse, neglect, or exploitation. In Michigan, over 70,000 adults are victims of elder abuse. State and federal laws are in place to prevent elder exploitation. Civil remedies and criminal penalties are available to individuals and entities that financially, mentally, or emotionally abuse the elderly. Victims of elder exploitation may file a lawsuit for recover the damages they suffered such as, loss of money, emotional distress, humiliation, and loss of property. Some people who are 65 years old and older may be on fixed or low incomes. They may not have the additional funds to file a lawsuit. Lawsuits sometimes take years to settle resolve. throughout the lawsuit costs and fees arise and accrue. Legal financing can help to lighten the financial weight of a lawsuit.

Legal financing or legal funding is a conditional loan provided by a third-party financing company to help a litigant fund his lawsuit. When the plaintiff borrows the money from the lender, the loan is paid back to the third-party funder if the plaintiff wins or settles the lawsuit. The risk of repayment remains with the lender. The terms of the loan may also list the percentage of the plaintiff’s award that goes to the lender as repayment or in addition to repayment of the loan.

Additionally the third-party financer funds the lawsuit but does not control it. Even if the litigation funding pays for the attorney’s fees, the attorney works for the borrower. Therefore, the attorney must maintain attorney-client privilege and cannot provide privileged information to the lender without the client’s permission

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Litigation Funding