Medicaid Fraud/Money Laundering
9:59 pm
Thu March 7, 2013

State Suing Keokuk Business Owners

The state of Iowa is seeking millions of dollars in damages from the owners of three Keokuk businesses.

Alan Israel and his son, Jason Israel, both of Phoenix, AZ, are accused of presenting false claims, using false statements and money laundering.

The 27-page lawsuit, filed March 1 in South Lee County District Court, also lists the businesses as defendants.

Lexington Square (Owned by both), a residential care facility
Dave's Place (Owned by both), a specialized nursing facility
Lexington Square Real Estate (Owned by Alan Israel)

The state is seeking more than $17-million in damages.  That is three times the value of the property used in the alleged money laundering.

It says the defendants filed dozens of false or fradulant claims since 2010 with the state's Medicaid system, seeking to be reimbursed for various expenses, including travel and hotels.

Some of the other claims listed by the Iowa Attorney General's Office in the lawsuit involve improperly boosting Medicaid per-diem rates, improper payments and fradulant debt financing.

This is the first civil lawsuit brought forward under the Iowa False Claims Act and a money laundering statute.

The AG's Office says this is the result of an eight-month investigation conducted by the Medicaid Fraud Control Unit of the Iowa Department of Inspections and Appeals (DIA).