Attorney General: No evidence of fraud at one targeted behavioral health provider.

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Attorney General Gary King announced today that his office had completed the first part of their review of the Martinez administration’s audit of HSD behavioral health providers.  Verdict 1: No fraud.

This release from


Attorney General Gary K. King

Thursday, January 16, 2014

CONTACT:  Phil Sisneros 505-222-9174 or Lynn Southard 505-231-4731

AG: Insufficient Evidence of Fraud by The Counseling Center

Investigation Findings Released to HSD Today

(ALBUQUERQUE)—New Mexico AG Gary King today announces that after an in depth investigation of The Counseling Center in Alamogordo, his office has found insufficient evidence to support allegations of fraud.  

The AG’s Office will continue to investigate other providers referred to the AGO as part of the overall behavioral health audit originating with the New Mexico Human Services Department.

The final report found $19,000 in overbillings which needed additional documentation from the provider.  Unfortunately, the provider is already out of business.

State Finds No Fraud By Mental Health Provider  The Associated Press

Attorney General Gary King says investigators found no fraud by a behavioral health provider in Alamogordo although Medicaid was improperly billed for $19,000 in services.

King’s office announced Thursday it had finished an investigation of the first of more than a dozen nonprofit mental health providers that had their Medicaid payments suspended last year by the Human Services Department because of allegations of fraud, mismanagement and billing problems.

A department spokesman says the agency will investigate the overbillings by The Counseling Center in Alamogordo and suspects the amount is much higher.

The state contracted with an Arizona company to take over providing services that had been handled by the nonprofit group.

Counseling Center CEO Jim Kerlin said the group is out of business and he disputed there were overbillings.