New York City will pay the federal government more than $1 million to settle a whistleblower claim alleging fraud by the city’s schools.
The $1.375-million settlement, announced Monday, resolves allegations that the New York Education Department submitted false claims for Medicaid services not provided to special-education students.
The suit was brought by Dana Ohlmeyer, a counselor in the city schools. She will get 15 percent of the settlement, or $206,250. The city will also pay $40,000 to cover Ohlmeyer’s legal fees and costs.