CNSI is currently under investigation by the FBI, which has alleged that then-Louisiana Health and Hospitals Secretary Bruce Greenstein, a former CNSI employee
, exerted undue influence in steering the Medicaid contract to Louisiana.
According to a story in the New Orleans Times Picayne
, the FBI also acccused CNSI of witness tampering in another case.
“According to the FBI report in this Court’s possession, one of CNSI’s owners, in front of the other three owners, said if the employee ‘ever disclosed the misconduct at the company they would have him killed.’”
In 2011, the State of South Dakota accused CNSI of overbilling for a state Medicaid website, according to a story by the Aberdeen News
The South Dakota Department of Social Services has paid $49.7 million so far for a new Medicaid processing system that at this point remains inoperable.
The original contract was for $62.7 million, but the new system is now expected to cost far in excess of $80 million to complete and will take two to three more years to get running, according to court documents filed as part of a lawsuit between the contractor and the department.
The company that eventually won the contract, Client Network Services Inc. of Maryland, submitted a proposal in 2007, later participated in another final-and-best offer round, and was awarded the contract in June 2008.