Documents: Maple Leaf under investigation by AG's Office

The Vermont Attorney General's Office's Medicaid fraud unit is investigating the now closed Maple Leaf Treatment Center, according to court documents filed in U.S. Bankruptcy Court.

The state agency wrote in a motion that its investigation is in accordance with the Vermont False Claims Act and regards Maple Leaf's filing of Medicaid claims. As part of the investigation, the Attorney General's Office is trying "to ascertain the amount of damages suffered by the Vermont Medicaid program due to the Debtor's filing of false claims," a motion filed in May stated.

VTDigger.org was first to report the existence of the investigation by the Attorney General's Office.

The former Underhill drug and alcohol addiction treatment center closed unexpectedly in February and filed for Chapter 7 bankruptcy. Maple Leaf had served as one of three residential treatment centers for opiate addiction treatment in the state. Staffing and financing were among a "combination of factors" considered when the board discussed the future of the nonprofit, the board's president, Jeffrey Messina, has said. 

Court documents filed by the Attorney General's Office in the bankruptcy case state that the former treatment center has been under investigation since at least late February when it filed for bankruptcy. Attempts on Monday to reach Assistant Attorney General Jason Turner, who leads the Medicaid fraud unit, were unsuccessful. 

The Attorney General's Office filed documents in the center's bankruptcy case in May to ask for an extension in filing proof of a claim against the estate. State investigators had asked for documents the state needs to "ascertain the precise value of its claim," but said the case's trustee, Douglas Wolinsky, had encountered "certain difficulties" in locating and accessing those documents, the motion stated.

Wolinsky, of the law firm Primmer Piper Eggleston & Cramer PC, declined to comment Monday. However, a letter from Wolinsky was included with the state's May request consenting to an extension until either Aug. 1 or 45 days after the Attorney General's Office receives the documents — whichever was earlier. 

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On Monday, the Attorney General's Office asked the court for a second extension, saying investigators received the documents from Wolinsky on July 19, but would need more than 13 days to review the documents. 

"The Trustee encountered greater challenges in locating and accessing documentation ... than anticipated," Assistant Attorney General Charity Clark wrote in a motion filed Monday.

She added that "given the quantity and nature of the responsive documents," the state and Wolinsky agreed to an extension of the deadline to file a claim until Sept. 22. The judge has not yet ruled on the motion as of 4:15 p.m. on Monday.

The treatment center's indefinite closure followed what was described as a temporary 30-day closure during which Maple Leaf planned to restore staffing levels and conduct training. The nonprofit, which was licensed through the state, also ran an outpatient center in Colchester for addicts taking part in medication-assisted treatment..

Bankruptcy filings show that Maple Leaf has total liabilities to creditors in excess of $1.1 million.

Contact Elizabeth Murray at 651-4835 or emurray@freepressmedia.com. Follow her on Twitter at @LizMurrayBFP.