Three former managers at AIDS Healthcare Foundation, Inc. (AHF) have come forward alleging the organization has been defrauding federal healthcare programs for the past five years, raking in as much as $100 million in the process.
AHS is a global nonprofit based in Los Angeles and the largest provider of HIV/AIDS medical care in the U.S., with over 350,000 patients. At least, according to its website. That number, it has now been alleged, may be greatly inflated.
In a lawsuit filed with the U.S. District Court for the Southern District of Florida on April 3, whistleblowers Jack Carrel, Mauricio Ferrer, and Shawn Loftis, all of whom held management positions with AHF before being fired from their jobs after questioning the organization’s referral practices, claim AHF boosted funding from federal healthcare programs, including Medicare, Medicaid and Health and Human Services HIV/AIDS grant programs, by offering illegal kickbacks of $100 to employees who created false HIV/AIDS referrals, and $50 to patients who patronized its clinics and pharmacies.
According to the complaint, the fraud began back in 2010 and took place in 11 different states plus Washington, D.C., and resulting in AHF collecting more than $20 million a year off thousands of illegal referrals.
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“AIDS Healthcare Foundation’s fraudulent conduct is made even worse by the fact that these funds were entrusted to this healthcare company for the purpose of assisting a vulnerable patient population consisting of individuals living with HIV/AIDS, of whom more than 1.1 million reside in the United States,” lead counsel member Theodore Leopold, whose firm is representing the three plaintiffs, said in a statement earlier this week.
So far, AHF is keeping pretty mum about the allegations, other than to deny them. But we have a feeling this is going to get ugly.
Related stories:
AIDS Healthcare Foundation Pres. Calls Truvada A “Party Drug”, Refuels Debate Over PrEP Meds
AIDS Healthcare Foundation Confirms Two More Meningitis Deaths, Offers Free Vaccines
H/t: Morningstar
Caine
And how much of that money was spent on Michael Weinstein’s personal battle to force the use of condoms in porn in California? It’s a travesty that money has not been spent on fighting AIDS and helping people living with HIV. Weinstein (who by the way makes over $300,000 a year) should be fired.
Cam
Is this one of those groups that was also trying to fight against people using the HIV Propholactic drug?
Designermax
@Caine: Amen!!!! Caine!!! Something tells me that Michael Weinstein’s personal campaigns in both Nevada and to force condom only porn. I suspect he was attempting to pull together a ballot initiative for the whole state of California for 2016. I had read a report from Nevada that Michael was holding off until 2016, to kick his personalagenda off.
Designermax
@Cam: Yes, Cam, you are totally correct. Michael Weinstein was (from what I’ve read elsewhere) Michael Weinstein was having bill boards put up in places, around Florida, and large ads in both California and Florida in a massaged way discouraging gay men from taking/relying on the PrEP Protocol. He’s been very vocal about his discouragement of men using it. I think he may have been tying in that campaign, in with the Condom Only Porn debate. When you think about it, and stand mentally at a distance what it really is, Michael Weinstein looks like he is afraid of being out of job!
hyhybt
Sounds like it’s starting out pretty ugly.
jimontp
@Designermax: Not only could AHF could be accused of “financially based decisions,” by its executives, it has the dubious designation of contributing to more HIV infections by denigrating PrEP. Scientific fact PreP works. Do we really need an “Aids Foundation,” that confuses their moral judgements about PrEP users with the fact that PrEP can reduce HIV transmisssion? Time to close down this farce.
Designermax
@jimontp: Agreed!!! Not merely is it a ruse to keep their jobs, but more importantly keep their own gravy-train rolling in, as they feed from the slop filled trough!!!
jason smeds
I have never ever donated to the AIDS cause. The whole AIDS scare has been a scam from day one in my opinion. It’s been a money-making scheme designed by scientists, Big Pharma and pity-poor-me gay guys who love identifying with an illness class.
Yes, AIDS does exist, and it has been horrible for those who suffered. But the solution is not big money. It’s keeping your zippers shut. Zippers are cheap – go buy one.
Charles Jenkins
Disgusting. I’m sure they aren’t the only organization.
Bob Ashworth
Sad.
Transiteer
Lots of money at stake always means corruption and graft. Seems you can’t have one without the other. This is Fraud though, quite plainly. When so much is needed to combat AIDS, I cry to think that something with so much potential for good is being a bread basket for the Crooked.
Giancarlo85
@jason smeds: Oh shut up. Please. Everything you say is driven by ignorance and paranoia. If you think the “AIDS Scare” has been a scam, take a look at official government figures in the United States.
As far as this article, this is an organization that grossly misused funds and perhaps criminal charges could result. This funding should have been directed at research.
Chris
$100 million fraud is horrific; may the perps be caught and prosecuted.
And while we’re at it, what say the people responsible for the mortgage and banking frauds that resulted in this nation’s virtual economic collapse get prosecuted as well? …as well as the folk who’ve stolen billions over the past near-15 years of nonstop war?
Designermax
Nice rallying cry!!! But let’s try and stay on point here, with AHF, especially since they are the ones most closely affecting and effecting our community.
Giancarlo85
@Chris: “what say the people responsible for the mortgage and banking frauds that resulted in this nation’s virtual economic collapse get prosecuted as well? ”
Impossible! Many of them sit in the House of Representatives and control all the budget committees! Now they are gutting financial reform (like the Frank-Dodd rules).
Where are the republican blowhards I wonder?
Martin Molina Jr.
AHF Rejects Claims by Former Employees. http://www.marketwatch.com/story/ahf-rejects-claims-by-former-employees-2015-04-08
Soulforce1
@jason smeds: You’re an idiot and a conspiracy theorist nut job. The “AIDS Scare” is real and stems from the millions of deaths worldwide that were the direct result of infection with the virus that causes HIV. And the only thing worse than the Michael Weinstein’s of the world demanding “condom every time” prevention messages are the “Jason Smeads of the world advocating “abstinence” for HIV prevention. Abstinence-only education for the prevention of pregnancy and STI’s has proven to be a miserable failure and long-term abstinence is simply not realistic or sustainable for most people, especially gay men. Education and empowering people to make their own decisions based on their comfort level around risk are the best forms of prevention. Empowering people with tools like PrEP places responsibility for maintaining a negative HIV status where it ultimately belongs, firmly in the hands of those who are HIV negative and wish to stay that way.
jason smeds
Immune deficiency has been around for millions of years. It is the natural result of mistreating your body. You don’t need to have HIV in your system to experience a decline in your immune system.
The gay scene that developed out of the 1960’s concentrated people and their germs into small places. Concentration leads to contamination of the vessel into which everything is concentrated. It’s got nothing to do with sexuality but how you behave as a germ-carrier within the vessel.
jason smeds
Soulforce1,
Empowering people with tools like PrEP? LOL. More like empowering Big Pharma, sweetheart.
Cam
@jason smeds:
Your comment is meaningless. You seem to just be looking for an excuse to bitch about the gay community of the 60’s and 70’s.
Ok fine, you did that, and as usual it was completely off topic and not relevant to this posting.
The fact that you don’t need to have HIV to have an immune issue is a stupid comment. You dont need to have Herpes to have a rash, and you don’t need to have Appendicitis to experience stomach pain either. But that doesn’t change the fact that there are treatments for both.
ekim63
No surprise here. Michael Weinstein and Tom Meyers stiffed me and ALL of my vendors after we produced an amazing fashion event that raised AHF a half million dollars. Sadly, it’s the clients who will suffer.