The New York Office of the Attorney General (OAG) recently announced two agreements with White Glove Community Care, Inc. (White Glove). One agreement reached with OAG’s Labor Bureau involved unpaid wages to White Glove’s workers. The second agreement entered with OAG’s Medicaid Fraud Control Unit concerned false claims the company allegedly submitted to Medicaid.

The New York Wage Parity Act fixes a set wage and benefits minimum that licensed home care services agencies must pay employees who perform home health aid and personal care services to Medicaid recipients. White Glove failed to pay owed wages and benefits to its home health aides and personal care aides, but it still sought and received Medicaid payment for care performed by these employees. Furthermore, White Glove falsely certified compliance with the Wage Parity Act.

Under the settlement, White Glove will pay $2 million to OAG for distribution to current and former employees, as well as $1.2 million to the New York State Medicaid Program. This settlement is the third in a continuing investigation by OAG of various licensed home care agencies. Earlier this year, OAG settled with All American Homecare Agency, Inc. (All American) and Crown of Life Care NY LLC (Crown) for similar New York Wage Parity Act and Medicaid violations. All American repaid $4 million to Medicaid for submitting false claims. Crown paid $1.5 million to its employees and $1.4 million to the Medicaid program.

Why This Matters

These cases illustrate that the OAG remains focused on both false claims issues and Medicaid fraud. This is part of the state AGs’ overall focus to ensure Americans’ tax dollars are not fraudulently used. Whether concerning tax fraud, securities fraud, misrepresentations in the cybersecurity context, or other types of misconduct, we expect a new wave of state false claims cases to surface over the next few years. We will continue to monitor all future OAG or other state AGs investigations on these issues.

Troutman Pepper State Attorneys General Team

Ashley Taylor – Co-leader and Firm Vice Chair
Ashley is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice. He focuses primarily on federal and state government regulatory and enforcement matters involving state attorneys general, the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC). Drawing upon his experience as a deputy attorney general, Ashley has developed an extensive consumer practice with regard to the consumer financial services industry.
Clay Friedman – Co-leader
Clay is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice. Informed by nearly a decade in a state attorneys general office, and more than 25 years in private practice, Clay spends much of his time representing clients in singular or multistate regulatory actions. Clay has repeatedly led teams before all 50 state attorneys general and also handles matters with the Federal Trade Commission, the Consumer Financial Protection Bureau, and other local, state and federal agencies.
Stephen Piepgrass
Stephen represents clients interacting with, and being investigated by, state attorneys general and other enforcement bodies, including the CFPB and FTC, as well as clients involved with litigation, particularly in heavily regulated industries.
Michael Yaghi
Michael handles high-profile state attorneys general, FTC, and CFPB investigations by advising clients through these complex government inquiries. He assists clients through the entire life cycle of investigations, from regulatory enforcement through formal litigation.
Ketan Bhirud
As a former government official at the state and federal level, Ketan leverages extensive experience in the public and private sectors to skillfully represent client interests.
Avi Schick
A former deputy attorney general of New York, Avi applies his experience in bet-the-company matters, representing clients in criminal and civil investigations and enforcement actions before state and federal regulators, prosecutors and enforcement agencies.
Chris Carlson
Chris represents clients in regulatory, civil and criminal investigations and litigation. In his practice, Chris regularly employs his prior regulatory experience to benefit clients who are interacting with and being investigated by state attorneys general.
Natalia Jacobo
Natalia is an associate in the firm’s business litigation practice. She recently received her J.D from the University of California, Davis School of Law.
Namrata Kang
Namrata is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. Her work includes advising clients in regulatory investigations and compliance matters, in addition to representing clients in civil litigation matters.
Whitney Shephard
Whitney is an attorney in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. She represents clients facing state and federal regulatory investigations and enforcement actions, as well as related civil litigation.
Stephanie Kozol
Stephanie is Troutman Pepper’s senior government relations manager in the state attorneys general department.