AIDS Healthcare Foundation accused of major scam

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April 12, 2015 | Sex & Society

AIDS Healthcare Foundation accused of major scam

A whistleblower lawsuit has been filed against the AIDS Healthcare Foundation (AHF), one of the major players in HIV and AIDS medical care, claiming it has scammed up to 12 states for about $20 million a year for the past 4 years.

The allegations are being made by three former managers of the AHF, including Shawn Loftis (who worked in porn as Collin O'Neal). The three filed suit last week claiming the company actually paid employees and patients kickbacks - $100 and $50 respectively - for any new HIV+ patient referrals. AHF could then claim to be helping more HIV+ individuals in need, resulting in bigger payouts from programs such as Medicare, Medicaid and Health and Human Services HIV/AIDS grant programs.

“[AHF President Michael] Weinstein also directed a patient financial incentive of $50 to those falling out of care to induce them to return to AHF medical care and also a financial incentive of up to $50 every few months to remain in AHF care, as well as an additional financial ‘bonus’ at the end of one year of such care,” the suit said.

Weinstein said the lawsuit lacked merit.

"Not only has AIDS Healthcare Foundation done nothing wrong, our pro-active approach to finding and linking HIV-positive individuals to lifesaving care and treatment is critical to stopping HIV in this country," Weinstein argued in a statement.

AHF is responsible for over 350,000 patients in 36 countries. Of course, in the porn world AHF is better known as a major force in pushing for mandatory condom use in porn films, such as its successful push for a condom law in LA County.

“For those people who have asked me where Weinstein gets the money to wage his multimillion-dollar personal vendetta against the porn industry ... now you know,” Diane Duke, head of the adult trade group Free Speech Coalition, said.

“Clearly for Michael Weinstein it has been all about fame and fortune at the expense of AHF's clients and people in need of HIV education and services,” she added. “That Weinstein would misuse tens of millions in federal funds earmarked HIV prevention and treatment is shocking and atrocious.”

Whistleblower Suit Spurs Questions Over AHF's Anti-porn Campaign [Xbiz]

Former AIDS Healthcare Foundation Managers File Whistleblower Act Claims Against Nation's Largest HIV/AIDS Medical Company for Patient Referral Kickback Scheme [Morningstar News]