Watertown woman claims she was fired for reporting alleged fraud

A former service coordinator for the Cerebral Palsy Association of the North Country claims in a lawsuit that she was fired by the association for reporting alleged fraudulent activity by another coordinator, Norman J. Wayte II.

Doreen M. Reece, Watertown, filed state Supreme Court action Wednesday at the Jefferson County clerk’s office against the association, which is based in Canton, and Mr. Wayte, Watertown. Mr. Wayte was removed from his position in October after the state Office of the Medicaid Inspector General and Commission on Quality of Care jointly alleged that he caused the association to bill Medicaid more than $100,000 for work he did not do. It was claimed that during the time Mr. Wayte said he was meeting with clients and billing Medicaid for it, he actually was working at Dick’s Sporting Goods, Salmon Run Mall.

According to the lawsuit, Ms. Reece worked for the association from June 2004 to June 2010, when she was fired. Among her duties were to obtain records and refer patients to appropriate agencies. The association is a health care provider for patients who suffer from cerebral palsy, which impairs the ability to control movement.

As part of her duties, Ms. Reece alleges, she became aware of potential fraudulent Medicaid claims being filed by the association and, more particularly, Mr. Wayte. According to court documents, she “became aware of field visits not being conducted and time being billed but not actually worked.” She claims that Mr. Wayte’s salary was being billed to Medicaid, “but all the work that he claimed was not being performed.”

She contends that in 2010 she alerted the association to the alleged fraudulent claims and was subsequently fired June 8, 2010. She claims that the association’s corporate compliance handbook, which she argues represents a contract between her and the association, states that she had an obligation to report alleged misconduct and fraudulent activity and protects an employee from retaliation for reporting any such activity.

Ms. Reece maintains that her termination “was the direct result of reporting Mr. Wayte’s improper employee conduct and fraudulent activity” and that the firing breached the nonretaliation portion of the contract. Through her attorney, Paul E. Davenport, Albany, she is asking to be reinstated to her position, with full benefits, and payment of two times her back pay, plus interest. Mr. Davenport could not be reached for additional comment Thursday.

Doris A. Chenier, the association’s executive director, also could not be reached for comment. The association has agreed to reimburse Medicaid $100,109 for services billed, but allegedly never completed, by Mr. Wayte.

The Office of the Medicaid Inspector General referred Mr. Wayte’s potential prosecution to the St. Lawrence County district attorney’s office. Assistant District Attorney Jonathan L. Becker said Thursday he was unable to comment on a pending case. Mr. Wayte resigned as chairman of Watertown’s Planning Board in October.