Posted on: Wednesday, February 5, 2003

Lawmakers, company to settle Felix dispute

By Jennifer Hiller
Advertiser Education Writer

Lawmakers today will announce a settlement with a company that provided services for disabled children under the Felix Consent Decree.

The development is the first since May in an investigation into alleged fraud, abuse and overcharging in the implementation of the federal court order to improve services to Hawai'i's special-needs students.

"We wanted to highlight this one because it's a sizable amount," said Rep. Scott Saiki, co-chairman of the Legislature's Felix Investigative Committee.

The single indictment issued so far was against Susan Puapuaga, who worked as a therapeutic aide with the Alaka'i Na Keiki mental health services agency. She was charged in May with 10 felony counts of medical assistance fraud for allegedly billing the state for unprovided services worth $1,800. She pleaded no-contest in July.

The state has spent more than $1 billion on services to special-education children under the consent decree. The public schools reached a milestone last month as all campuses came into provisional or full compliance with the decree.