Date: August 18, 2026
Crain's New York Business, Buffalo Business First, and other publications reported on a recent $9 million settlement, which resolved allegations that Safire Rehabilitation, a network of companies providing physical and occupational therapy, defrauded Medicare and Medicaid by pressuring patients and therapists into unnecessary treatments. TELG principal Janel Quinn represented former Safire employee Laura Ciavarella, who alerted the U.S. government to the fraud.
[EXCERPT]
Buffalo Nursing Homes to Pay $9M After Medicaid Fraud Whistleblower Claim
Three New York nursing homes agreed to pay $9 million to the state and federal government over a yearslong Medicaid billing fraud scheme following a whistleblower accusation.
Three Buffalo area nursing homes — Safire Rehabilitation of Northtowns, Safire Rehabilitation of Southtowns, and Williamsville Surburban Nursing Home — reached a settlement with New York Attorney General Letitia James’ office this month for falsely representing the degree of care their residents needed in reports to the state, resulting in millions of dollars in fraudulent reimbursements from state and federal Medicaid and Medicare programs.
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Of the state share, 20% or $720,000 will go to whistleblower Laura Ciavarella, an occupational therapy assistant, who reported the practices.
» View full story on Crain’s New York Business
[OFFICIAL ANNOUNCEMENT]
Attorney General James Secures $6 Million from Three Buffalo Nursing Homes for Years-Long Fraudulent Billing Scheme
From the Office of the New York Attorney General (August 17, 2026)
NEW YORK — New York Attorney General Letitia James today secured $6 million from three nursing homes in the Buffalo region, Safire Rehabilitation of Northtowns, Safire Rehabilitation of Southtowns, and Williamsville Suburban Nursing Home (the Safire homes), for submitting tens of thousands of fraudulent claims to Medicaid to boost their revenue. A joint investigation between the Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU) and the United States Attorney’s Office for the Western District of New York (WDNY) revealed that from July 1, 2016 through December 31, 2020, the Safire homes submitted false data that artificially increased their reimbursement rates from Medicaid, allowing them to earn millions of dollars more than they should have by filing fraudulent claims. Under settlements with OAG and WDNY, the Safire homes will repay a total of $9 million and implement new procedures to prevent false billing and ensure all residents get the proper services they need.
“Nursing homes that commit financial fraud are stealing funds meant to provide care for our most vulnerable,” said Attorney General James. “The Safire homes used fraudulent data to rake in millions of dollars from Medicaid without regard for the needs of the residents they were supposed to be serving. My office has rooted out fraud and resident neglect in nursing homes throughout New York, and we will continue to investigate Medicaid fraud to protect New Yorkers.”
» View press release on Ag.ny.gov
[ADDITIONAL COVERAGE]
Buffalo nursing homes to pay $9M in fraud settlement
From Buffalo Business First (August 17, 2026)
A whistleblower report led to an investigation that uncovered tens of thousands of fraudulent Medicaid claims filed on behalf of three Buffalo nursing homes.
» View full story on Buffalo Business First
3 nursing homes to pay $9 million for submitting fraudulent Medicaid claims
From WIVB-TV (August 17, 2026)
BUFFALO, N.Y. (WIVB) — Three nursing homes under the Safire homes banner will pay a total of $9 million for submitting fraudulent Medicaid claims for a period of more than four years, the state Attorney General office said Monday.
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According to the U.S. Attorney’s Office, Safire properties scheduled “skilled rehabilitative therapy and setting skilled rehabilitative therapy goals for residents based on the reimbursement policies of the residents’ insurer, rather than medical need,” pressured treating therapists to provide therapy even when the therapists recommended against therapy, pressured residents to attend therapy after thy refused to, and manufactured and altered referrals and medical records “to justify unreasonable and unnecessary therapy.”
Of the $9 million, $3.6 million will go directly to the state and a total of $5.4 million will be paid to the federal government. Under the settlement announced Monday, the nursing homes also admit wrongdoing and will have to adopt “new policies and procedures” to ensure that its residents covered by Medicaid receive services they need.
Three western New York nursing homes named in fraudulent Medicare billing scheme, New York AG says
From WGRZ-TV (August 17, 2026)
BUFFALO, N.Y. — Three western New York nursing homes will now pay $9 million to settle allegations that they submitted tens of thousands of fraudulent claims to Medicaid and Medicare, New York Attorney General Letitia James announced Monday.
Upstate NY nursing homes caught in massive fraud: They’ll repay millions in settlement
From Syracuse.com (August 18, 2026)
Three Buffalo-area nursing homes will repay $9 million after admitting to a years-long scheme that used fraudulent billing to boost their Medicaid and Medicare reimbursements, New York Attorney General Letitia James announced.
Safire Rehabilitation of Northtowns, Safire Rehabilitation of Southtowns and Williamsville Suburban Nursing Home submitted false data from July 2016 through December 2020 that artificially inflated their reimbursement rates, according to a joint investigation by the state attorney general’s Medicaid Fraud Control Unit and the U.S. Attorney’s Office for the Western District of New York.
The facilities manipulated the system by inflating the amount of rehabilitative services certain residents needed during periods that affected their Medicaid reimbursement calculations, investigators found. During periods that did not impact reimbursement rates, the facilities reduced rehabilitation services to those same residents, regardless of their actual needs.
» View full story on Syracuse.com
Three WNY Rehab Companies to Pay $9M in False Claims
From Finger Lakes Daily News (August 18, 2026)
Three New York rehabilitation companies have agreed to pay $9 million to settle allegations that they submitted false claims to Medicare and Medicaid for unnecessary or undocumented therapy services.
U.S. Attorney Michael DiGiacomo announced the settlement involving Safire Rehabilitation of Northtowns, LLC, Safire Rehabilitation of Southtowns, LLC, and Williamsville Suburban, LLC.
» View full story on Finger Lakes Daily News
AG’s office secures millions from 3 Western N.Y. nursing homes for fraudulent Medicaid claims
From Spectrum News Buffalo (August 17, 2026)
The New York Attorney General’s Office has secured $6 million from three Western New York nursing homes for a fraudulent billing scheme that saw the homes submit thousands of fake Medicaid claims over a period of four years, AG Letitia James said Monday.
» View full story on Spectrum News Buffalo
3 Buffalo-Area Nursing Homes to Pay $9 Million After Admitting Medicaid and Medicare Fraud
From inkl (August 18, 2026)
Three nursing homes in the Buffalo, New York region will pay a combined $9 million to settle allegations that they submitted tens of thousands of fraudulent claims to Medicaid and Medicare over several years, New York Attorney General Letitia James announced in an official press release.
3 NY nursing homes to repay $9M after Medicaid fraud investigation
From lohud (August 19, 2026)
Three Buffalo-area nursing homes will repay $9 million after an investigation found they submitted tens of thousands of fraudulent claims to Medicaid to increase their reimbursement rates, New York Attorney General Letitia James announced Monday.
3 Buffalo-Area Nursing Homes to Pay $9 Million After Admitting Medicaid and Medicare Fraud
From SavingAdvice.com (August 18, 2026)
Three nursing homes in the Buffalo, New York region will pay a combined $9 million to settle allegations that they submitted tens of thousands of fraudulent claims to Medicaid and Medicare over several years, New York Attorney General Letitia James announced in an official press release.
