Federal Raids Hit NYC Adult Day Care Centers in Massive Medicaid Fraud Crackdown

Federal and state law enforcement — including Homeland Security Investigations, the New York State Office of the Medicaid Inspector General, the IRS, and the NYPD — conducted coordinated raids on adult day care centers across multiple New York City boroughs as part of a months-long Medicaid fraud investigation. Two operators of a Staten Island social adult day care center, Yangsim Oum and Juyoung Choe — a mother-and-daughter team serving as owner and program director respectively — were arrested on more than 400 counts of healthcare fraud and falsifying business records. They allegedly billed Medicaid for services to clients who never showed up, including people who were deceased or traveling abroad, defrauding the program of over $500,000. Agents also searched Hanmaum Daycare in Flushing, Queens, removing boxes of documents and computer equipment. Governor Hochul said the investigation targets providers suspected of money laundering, kickbacks, and improper billing. The broader probe involves over 100 providers; agents interviewed staff at 20 centers and sent letters to 80 others. An FBI audit found Medicaid paid approximately $2.4 billion for adult day care services from 2019 to 2024, with investigators examining whether a portion was stolen.