Friday, January 9, 2026

Notoriously fraudulent NY health program lost $1.2 billion to scammers and middlemen: ‘Minnesota multiplied by 10’

Consumer Directed Personal Assistance Program (CDPAP) in New York, a program designed to allow family members to care for disabled loved ones. It highlights extensive fraud and waste within the program and the government's attempts to reform it.

Fraudulent Activities: The CDPAP program has been plagued by fraud. One example includes a man who falsely claimed his family was caring for his mother to receive $348,000, while she was in Bangladesh.

Program Overview: CDPAP was established to reduce the need for nursing homes, but it has suffered from a lack of oversight. The program has no requirements or medical certifications, making it easy to defraud.

Financial Impact: The New York Post identified at least $179 million stolen by CDPAP recipients. The program wasted over $1 billion of taxpayer money on middlemen.

Escalating Costs: CDPAP spending has increased dramatically, from $2.5 billion in 2019 to $9.1 billion in 2023. Annual spending reached $12 billion in 2025.

Government Response: The state has taken steps to reform CDPAP, including consolidating the program under a single company, Public Partnerships, LLC (PPL), and removing hundreds of middlemen.

Resistance to Reform: There has been resistance to reforms, including a "dark money campaign" allegedly set up to block changes.

Fraudulent schemes: Zakia Khan pleaded guilty to a large scheme to defraud Medicaid, and Marianna Levin was sentenced to prison for defrauding Medicaid of $100 million. Farrah Rubani was charged with embezzling $11 million.

CDPAP in New York has experienced widespread fraud and overspending. While the state is trying to fix the issues, the program remains a target for fraud. 

https://nypost.com/2026/01/08/us-news/nys-fraudulent-cdpap-program-lost-1-2-billion-to-scammers-and-mismanagement/

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