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The Human Services Department in June 2013 cut off Medicaid funding to 15 nonprofits, saying an audit by Boston-based Public Consulting Group showed more than $36 million in overbilling, as well as mismanagement and possible fraud.

The Human Services Department brought in five Arizona companies to take over services from those New Mexico providers.

“While we did find some regulatory violations, there did not appear to be a pattern of fraud for any of the 10 completed investigations,” Attorney General Hector Balderas wrote in a letter delivered to legislators Feb. 8.

The HSD has defended its investigation, and department spokesman Kyler Nerison said last week that the department respects but disagrees with Balderas’ decision not to prosecute.

Patsy Romero, chief operations officer of Easter Seals El Mirador, said on Sunday that the providers are finalizing a letter calling for a federal investigation and are pursuing a civil lawsuit.

Nancy Jo Archer, executive director of Hogares, said the providers never received a hearing or due process and the fact that they were recently cleared makes the need for an investigation even more necessary.

“The Attorney General did rule he found no fraud for any of us, which makes the question why even more relevant,” Archer said. “And that is why we think there is an investigation in order.”

Capital bureau reporter Deborah Baker contributed to this report.