A Brooklyn adult day care owner was sentenced to more than six years in federal prison for leading a $64 million Medicaid fraud that drained funds meant for seniors and disabled New Yorkers.
Story Snapshot
- A federal judge sentenced Zakia Khan to 76 months for a $64 million Medicaid fraud.
- Khan pleaded guilty in 2025 to health care fraud and illegal kickback conspiracies.
- Prosecutors said Medicaid paid about $56 million on false claims tied to two day cares.
- The case fits a wider pattern of adult day care kickback schemes in New York.
What The Court Decided And Why It Matters
United States District Judge Natasha C. Merle sentenced Zakia Khan to 76 months in prison in Brooklyn federal court. The Department of Justice said Khan led a scheme that used kickbacks and false claims to bill Medicaid about $64 million through two social adult day care centers. The government said Medicaid paid about $56 million on those claims. The court also ordered more than $56 million in restitution and the forfeiture of $5 million in fraud proceeds.
The Department of Justice said the fraud ran from about October 2017 through July 2024. During that time, marketers steered Medicaid recipients to Happy Family Adult Day Care and Family Social Adult Day Care in Brooklyn. Prosecutors said Khan and her team then paid illegal kickbacks and billed for services that were not provided or not allowed under the rules. The court’s orders covered cash, properties, and gold jewelry tied to the proceeds.
How The Case Was Built And What Khan Admitted
Federal prosecutors charged eight people in 2024 for roles in a broader scheme involving two adult day cares and a home health financial intermediary. The charging papers described referral kickbacks, bribes to beneficiaries, and claims for services that were never provided. Khan pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. Her plea set up Friday’s sentencing and asset recovery orders.
The Department of Justice’s account says investigators seized assets and traced money back to the fraud. Officials said Khan agreed to forfeit $5 million and that the court imposed restitution of more than $56 million. Those figures align with the amount Medicaid paid on the false claims, according to prosecutors. The government’s narrative is consistent across its plea and sentencing releases, which detail the dates, entities, and basic mechanics of the scheme.
The Bigger Picture: Why Adult Day Care Is A Target
This case matches a larger pattern seen in New York adult day care and related home care programs. The programs pay based on volume and attendance, which can push owners and marketers to chase enrollment, even when services are thin or not provided. Federal and state watchdogs have flagged weak oversight and large questionable payments across this space. Those systemic gaps make it easier for kickback rings to work and harder for auditors to catch problems quickly.
National anti-fraud drives have made this model a priority, with many defendants charged across multiple states in recent years. The Department of Justice has highlighted referrals, illegal payments to beneficiaries, and billing for phantom services as repeat red flags. The Brooklyn case underscores how those tactics can scale into tens of millions of dollars when controls are weak and verification lags billing. That hurts honest providers and drains care from people who need it.
What Taxpayers, Patients, And Honest Providers Should Watch Next
New York’s adult day care oversight is under pressure to close known gaps. State auditors have urged stronger checks to stop payments to centers that do not meet standards. Program managers can tighten attendance proof, revisit network approvals, and flag outlier billers sooner. Federal and state teams can also expand data sharing so investigators see spikes early. Each fix aims at one goal: make sure public dollars pay for real care, not kickbacks and empty rooms.
Brooklyn Daycare Owner Sentenced to 76 Months for $64 Million Medicaid Fraud https://t.co/Fy0AC4PexS
— DLW 🔥#MAGA (@Dlw20161950) September 13, 2026
For families and seniors, the lesson is simple but vital. Ask for written care plans, track actual services received, and report pressure to switch providers for gifts or cash. For honest providers, invest in compliance and clear records. For taxpayers across the political spectrum, this case is a reminder that weak oversight invites abuse. Stopping that abuse protects both vulnerable patients and the workers who try to deliver care the right way.
Sources:
townhall.com, homehealthcarenews.com, justice.gov, nypost.com
