Attorney General James Secures $6 Million from Three Buffalo Nursing Homes for Years-Long Fraudulent Billing Scheme

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."

"Medicare and Medicaid fraud drains taxpayer funds and weakens these vital government programs," said U.S. Attorney for the Western District of New York Michael DiGiacomo. "This settlement reinforces our commitment to safeguarding federal funds and ensuring seniors receive the care they deserve."

Nursing homes are required to submit data accurately reflecting the care required by their residents to the New York Department of Health (DOH). The DOH uses that data to calculate the nursing homes' Medicaid reimbursement rates for all claims submitted within the following six months. The OAG's investigation found that for years, the Safire homes falsely inflated the amount of rehabilitative services certain residents needed during periods that impacted their Medicaid reimbursement rates. During periods that did not impact the Medicaid reimbursement rates, the Safire homes reduced the amount of rehabilitation services provided to certain residents, regardless of their need. As a result of their fraud, the Safire homes received millions of dollars from Medicaid at inflated rates.

Under the settlement announced today, the Safire homes admit wrongdoing and will pay $6 million to Medicaid, of which $3.6 million will go directly to New York. The remaining $2.4 million will be paid to the federal government. The Safire homes will also pay an additional $3 million to the federal government for defrauding Medicare. In addition, the facilities must adopt new policies and procedures to ensure that residents covered by Medicaid receive all the services they need and that services are properly documented to prevent future fraud.

The OAG and WDNY began this investigation after a whistleblower filed a complaint in December 2020 under the qui tam provisions of the New York False Claims Act and the federal False Claims Act in the U.S. District Court for the Western District of New York. The New York False Claims Act allows individuals to file actions on behalf of the government and share in any recovery.

Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, please call 911.

The MFCU investigation was conducted by Auditor-Investigator Rebecca Whitescarver, under the supervision of Regional Chief Auditor Mary Henry. Support was provided by Data Analytics Team members Si Lok Chao and Elise Roche. Chief Auditor Dejan Budimir supervised the audit and data analytics teams.

The settlement was handled by Special Assistant Attorneys General Jill D. Brenner and Amanda L. Raimondi, under the supervision of Chief of Civil Enforcement Alee Scott and Buffalo Regional Director Paul C. Parisi. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Thomas O'Hanlon. MFCU is part of the Division for Criminal Justice, which is led by Chief Deputy Attorney General José Maldonado and overseen by First Deputy Attorney General Meghan Faux.

New York MFCU's total funding for federal fiscal year (FY) 2026 is $70,793,651. Of that total, 75 percent, or $53,095,240, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $17,698,411 for FY 2026, is funded by New York State.