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Hospital Says Verizon Cheated it of $2 Million

BROOKLYN (CN) - Verizon defrauded the Maimonides Medical Center of more than $2 million by overbilling it for more than 10 years, and refuses to repay the money though it admits it cheated the hospital, Maimonides claims in Federal Court.

"Verizon specifically admitted that since 1997 it improperly billed and/or received overpayments from MMC of over $2.75 million," Maimonides claims. It says it discovered the fraud in January 2007 after hiring "independent experts - former longtime Verizon employee" to write a report on it.

"Despite MMC's repeated demands, and Verizon's admission that it improperly billed and collected funds from MMC, Verizon has refused to credit, reimburse, or otherwise compensate MMC for over $2 million of the $2.75 that Verizon admits it has improperly charged, billed to, and collected from MMC," the complaint states.

The hospital is represented by Anderson, Kill & Olick of Manhattan.

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