Firm sued for fraud 18 months ago is back … signing up Obamacare applicants

Firm sued for fraud 18 months ago is back … signing up Obamacare applicants

Fool me once...
Fool me once…

What could be more perverse than a nonprofit firm being commissioned to sign people up for Obamacare a year and a half after it was sued for fraud? Try the fact that the group’s calling card reads “Community Development.” That’s the racket Barack Obama was involved in up until he was given a real (realer?) job in the private sector.

The New York Post reports that Seedco, a New York-based firm, was sued by the federal government in 2012 for falsifying more than a fifth of 6,500 job placements under a $22.2 million federally funded contract.

Now Seedco is back, this time joining with the currently closed government to train “patient navigators” so that they can assist health insurance seekers maneuver through the labyrinthine maze that is Obamacare. On this go-round Seedco is partnering with dozens of New York agencies, including the Gay Men’s Health Crisis, Food Bank for New York City, and the Chinese American Planning Council. It has also signed contracts with agencies in Georgia and Tennessee, from which states it will receive $2.1 million and $1.2 million respectively.

A statement from the company indicates it under new (and reportedly cleaner) management and that all employees involved in the previous confidence schemes had been fired or forced out. In all seven managers at two job centers were removed. The statement goes on to say:

As a result of these and other operational changes, we strongly believe that Seedco has the experience, integrity and commitment to carry out this work.

But critics, cognizant of the immutability of leopards’ spots, caution about the potential for fraud.

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Howard Portnoy

Howard Portnoy

Howard Portnoy has written for The Blaze, HotAir, NewsBusters, Weasel Zippers, Conservative Firing Line, RedCounty, and New York’s Daily News. He has one published novel, Hot Rain, (G. P. Putnam’s Sons), and has been a guest on Radio Vice Online with Jim Vicevich, The Alana Burke Show, Smart Life with Dr. Gina, and The George Espenlaub Show.


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