Lakewood Company Owners Cheated Medicaid Enrollment Assistance

According to a lawsuit filed by the New Jersey Attorney General, 2 Lakewood company owners allegedly cheated dozens of customers out of more than $300,000 they paid out for assistance in applying for Medicaid coverage.

The owners of Advanta Medicaid Specialists are also accused of using company money for their own personal use, as well as for donations to private schools, charities and synagogues, leading to the company’s closure.

According to the complaint, some 49 customers allege they paid out between $3,000 and $9,000 each for Advanta Medicaid’s services, which was meant to be advice on how to apply for Medicaid, how to “spend down” their assets to become eligible for the program, and other services. But the customers claim they never received the services, nor did they receive their promised refund should they not qualify.

“Families and individuals seeking assistance with Medicaid enrollment are among those who can least afford to lose thousands of dollars to fraud,” said Attorney General Gurbir S. Grewal.

The state is seeking restitution, attorney fees, investigative fees, unspecified penalties as well as a restriction of the defendants’ business activities in the state.