Hudson Valley Man Scammed Medicaid Out of $2.4 Million

A Hudson Valley man scammed millions of dollars from the system while he was supposed to be helping those with disabilities.

Details about Henry Alfonso Coley's plot to steal Medicaid money were unsealed this week, detailing the Poughkeepsie man's dastardly scheme. In the records obtained by Westfaironline, it was revealed that Coley used his non-profit organization to submit false claims for Medicaid reimbursements.  According to its website, Maranatha Human Services Inc offers "assistance to people with disabilities, support to families in need, and care to anyone who could use a helping hand through a system of community services." What no one else knew was that it was also illegally funneling millions of dollars into Coley's pockets.

The scheme racked up $2.4 million in false reimbursements from 2010 to 2019. Coley admitted to falsifying signed documents and using the money to finance his own expenses and pay for contracts given to himself and his family members.

It's possible that Coley would still be scamming the system today if it wasn't for a whistleblower within the organization. Maranatha’s former chief operating officer, Stephanie Munford uncovered the scheme and reported it to the courts. As a reward for coming forward, she was given a portion of the money Coley has agreed to return.

Unfortunately, the whistleblower will be getting much less than the half-million-dollar reward she should have. The court has agreed to let Coley pay back just $220,000 of the $2.4 million he stole because of his current financial situation. Munford will receive a percentage based on that number, resulting in a whistleblower payment of $19,360.

In addition to paying the fine, Coley has been banned from working for or even volunteering for organizations that receive Medicaid funds. He was also permanently banned from soliciting donations on behalf of any charity.