Everything seemed to be moving fast for DocGo in the spring of 2023. Maybe too fast. One minute they were a mobile health company that had found a niche during the pandemic, and the next, they were handed a massive $432 million no-bid contract by New York City to manage the migrant crisis.
But then the headlines started changing.
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The NY attorney general investigation into DocGo didn't just appear out of thin air. It was sparked by a series of "rocky" starts—to put it mildly—and reports of migrants being treated in ways that made state officials very, very nervous. If you've been following this, you know it's a tangled web of politics, a CEO with a fake resume, and millions of taxpayer dollars that the city’s Comptroller says were basically flushed.
Why Letitia James Stepped In
It started with a letter. In August 2023, the Civil Rights Bureau of Attorney General Letitia James’ office sent a stern warning to DocGo. They weren't just checking the math; they were worried about human beings.
The AG’s office had heard reports that DocGo was allegedly "limiting migrants' speech or movement." Think about that for a second. We’re talking about people being bused to hotels upstate, often under the impression they were headed for jobs and permanent housing, only to find themselves in a bureaucratic limbo.
The investigation focused on several heavy-hitting concerns:
- Misleading Information: Rumors that migrants were told they were eligible for healthcare plans they actually weren't.
- Intimidation: Reports of security guards hired by DocGo threatening the people they were supposed to be helping.
- Lack of Coordination: Local authorities in places like Albany were basically left in the dark when busloads of people arrived.
Honestly, it looked like a company that was great at logistics but maybe not so great at the "human" part of social services.
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The CEO Resume Scandal (Wait, He Didn't Have a Degree?)
Just as the legal heat was turning up, the story took a weird, almost cinematic turn.
In September 2023, the Albany Times Union dropped a bombshell: DocGo’s CEO at the time, Anthony Capone, had a bit of a creative streak on his professional biography. Specifically, he claimed to have a graduate degree in artificial intelligence from Clarkson University.
Clarkson University’s response? "We have no record of him."
Capone resigned almost immediately. He called it an "inaccuracy" that should have been corrected. But for investors and the AG’s office, it was a massive red flag about the "integrity and responsibility" of the vendor. When you’re handling a nearly half-billion-dollar contract, your CEO's background is kind of a big deal.
A $432 Million Headache for the City
While Letitia James was looking at civil rights, NYC Comptroller Brad Lander was looking at the checkbook. He was never a fan of the no-bid nature of this deal.
In August 2024, a scathing audit from Lander’s office revealed that the city’s Department of Housing Preservation and Development (HPD) basically failed to watch the shop. The audit found that 80% of the initial $13.8 million in payments were "inadequately supported."
Basically, the city was paying for:
- Empty Rooms: Nearly 10,000 hotel rooms went unused, but the city still paid overhead.
- Unauthorized Subs: DocGo used subcontractors that the city hadn't even approved.
- Shoddy Conditions: There were documented cases of mold, no microwaves, and "unpalatable" food.
By April 2024, the city finally had enough. They announced they wouldn't be renewing the full emergency contract. DocGo would finish out the year helping with the transition, but the "emergency" era of their involvement was effectively over.
What This Means for Business Ethics and Oversight
The NY attorney general investigation into DocGo is a classic case study in what happens when "emergency" spending meets a lack of oversight. DocGo argued they stepped up when no one else could. They say they delivered scale and speed.
But the courts are still sorting through the wreckage. As of early 2025, a federal judge ruled that a securities fraud lawsuit against the company could move forward. Investors are mad because they feel they were lied to—not just about the CEO’s degree, but about the company’s ability to enroll migrants in Medicaid and their actual relationship with major insurers like UnitedHealthcare.
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It’s a mess.
What You Can Learn from the DocGo Saga
If you’re a business owner or someone interested in public policy, there are real takeaways here.
Vet your leaders. If a CEO is willing to lie about a degree, what else are they fudging?
No-bid doesn't mean no-rules. Emergency contracts are a fast way to get things done, but they often lead to "fiscal mismanagement" that eventually catches up with you.
Human rights are a business risk. The AG’s investigation wasn't just about money; it was about the treatment of vulnerable people. In 2026, social responsibility isn't just a PR buzzword; it's a legal requirement.
The investigation might be moving into the "settlement and cleanup" phase now, but the impact on New York's contracting rules will likely last for years. It’s a reminder that when you take the public's money, the public—and the Attorney General—will eventually come looking for receipts.
Next steps for concerned citizens and investors:
- Review the Comptroller’s Audit: If you want to see the specific line items of where the money went, the 2024 audit is a goldmine of information on vendor mismanagement.
- Monitor the Securities Lawsuits: For those with a financial stake, keeping an eye on the Southern District of New York's rulings will be key to seeing if any restitution is made to shareholders.
- Track Policy Changes: Look for new legislation in New York aimed at "emergency contract" reform to prevent future no-bid disasters of this scale.