Wednesday, January 27, 2010

New Mexico Join 22 Other States in $24 Million Settlement

New Mexico Attorney General Gary King announced today:

New Mexico joins 22 other states and the federal government to settle allegations against FORBA Holdings, LLC., a dental management company that provides management services to Small Smiles dental clinics nationwide. Under the agreement,FORBA agrees to pay the participating states and the United States $24 million, plus interest, to resolve allegations that it caused bills to be submitted to these states’ Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid. Medicaid is funded jointly by the federal and state governments.

New Mexico will receive $361,970.88 under the settlement, which is less than the amount the SIC (State Investment Counsel)invested in Small Smiles. That investment was made under the New Mexico Private Equity Investment Program, a venture capital initiative designed for New Mexico start-ups. As we revealed, though, Small Smiles was not a New Mexico company, but is owned by an Arabian investment bank. As the result of our reporting, the SIC removed Small Smiles from its list of New Mexico companies receiving equity investments, but has not recouped its investment.

Read complete story here.

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