Inside the $38M Brooklyn Adult Daycare Scam and Political Fallout
Ralph Yozzo
The New York Post article details a major federal health care fraud case involving a massive Medicaid scam centered around Brooklyn-based adult day cares. Though the broader federal case total was identified as a $68 million scheme, the specific New York Post reporting highlights a $38 million chunk tied to high-profile Pakistani community leaders who used their political connections to blend in with influential New York Democrats.
The key takeaways from the case include:
- The Core Ringleader: Zakia Khan, a 54-year-old Brooklyn woman, acted as the ringleader. She owned two Coney Island day care facilities—Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc.—along with a home health care company and a shell company used to disguise the illicit funds.
- The Scam Mechanics: From 2017 to 2024, Khan and her network deployed marketers and recruiters to bribe Medicaid recipients with cash. They billed Medicaid tens of millions of dollars for social adult day care and home health care services that were either never provided or completely induced by illegal kickbacks.
- Money Laundering & Political Ties: The defendants utilized multiple business entities to launder the proceeds and generate the clean cash used to keep the bribery scheme alive. The Post's coverage specifically highlights how prominent figures involved in the bust actively embedded themselves into local politics, cozying up to prominent Democratic politicians to build social capital and influence while running the underground operation.
- The Legal Fallout: Khan ultimately pleaded guilty in Brooklyn federal court to conspiracy to commit health care fraud and conspiracy to defraud the United States. As part of her plea deal, she faces up to 15 years in prison and agreed to forfeit $5 million—including real estate properties, hundreds of thousands of dollars in cash, and gold jewelry seized from her home. Multiple co-defendants, including marketers and managers who helped run the ring, have also pleaded guilty or face substantial prison time.
Day care fraud charges: Somali Community leader says community is being targeted [April 11, 2016]
This video provides historical context on how federal investigators look into day care fraud and kickback rings targeting specific immigrant communities, similar to the dynamics surrounding the Brooklyn Pakistani community leaders in this case.
