Federal Agents Raid NYC Adult Day Care Centres in Medicaid Fraud Crackdown

Federal, state, and local law enforcement conducted a sweeping series of raids on adult day care centres across New York City as part of a broad Medicaid fraud investigation. Agents from Homeland Security Investigations, the IRS, the New York State Office of the Medicaid Inspector General, and the NYPD hit sites in Brooklyn, Staten Island, and Queens. A mother-daughter duo operating a Staten Island adult day care centre was arrested and accused of defrauding Medicaid and long-term care providers of more than $530,000 by billing for services to clients who were deceased or had never attended. Separately, federal prosecutors charged two Flushing-based men with paying senior citizens cash to enrol in day care programmes and then billing Medicaid for $120 million in services. Officials described schemes ranging from money laundering and kickbacks to improper billing. A state audit found that between 2019 and 2024 New York's Medicaid spent 40% to 60% more per enrollee than the national average.