An Anchorage social services agency that assists the disabled is under investigation for alleged Medicaid fraud.

“I can confirm that the Arc of Anchorage is under investigation,” said Cynthia Ducey, an Anchorage attorney who is representing the agency. “I can confirm that the Arc is cooperating fully and is committed to fair and accurate billing.”

Ducey would not comment further.

Clara Sanderson, senior public relations officer for the Arc, referred questions to Ducey. Sanderson said the agency was preparing a public statement.

Quinten Warren, an investigator with the Office of Special Prosecutions in the attorney general’s office, said he could not confirm or deny if a criminal investigation of the Arc is taking place. The Department of Law would only comment if charges are filed, Warren said.

Medicaid fraud costs American taxpayers hundreds of millions of dollars each year. Fraud, waste and abuse represents about 10 percent of payments made by Medicaid, according to Alaska’s Medicaid Fraud Control Unit, which operates out of the Office of Special Prosecutions.

For Alaska, that equates to reduced money available to provide medical services to needy Alaskans, according to the unit.

Earlier this month the owner of an Anchorage-based personal care attendant agency was sentenced to 12 months in prison plus ten years of probation for Medicaid fraud.

According to prosecutors, 51-year-old Cecelia DeLeon Sobier, owner of C Care Services LLC, was also ordered by a judge to pay $15,000 to the State of Alaska and more than $18,000 to Wells Fargo bank in restitution.

Since October 2013, the Medicaid Fraud Control Unit has filed criminal charges on 139 individuals, including three corporations, according to the attorney general’s office.

The unit has resolved 100 cases with 92 criminal convictions and 8 civil resolutions resulting in the person being barred from billing Medicaid as a condition of settlement

More than $4 million payable to the Medicaid program and $525,000 in criminal fines payable to the state have been collected.

Attorney: Arc of Anchorage under investigation for alleged Medicaid fraud
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