Feds Raid Brooklyn Adult Day Cares in Medicaid Fraud Probe
Authorities allege money laundering, kickbacks, and fraudulent billing in an ongoing investigation.
Federal authorities executed search warrants Tuesday at two adult day care centers in Brooklyn as part of a sweeping investigation into alleged Medicaid fraud, including money laundering and kickbacks. Homeland Security Investigations (HSI) agents were seen carrying evidence boxes from the facilities located in the Sunset Park and Borough Park neighborhoods.
"Billing public programs for care, transportation or other services that were never provided is fraud, NOT a paperwork mistake,'' HSI New York stated on social media, confirming the law enforcement action. The agency declined further comment, citing an active investigation.
Governor Kathy Hochul characterized the raid as part of a monthslong "massive effort to combat fraud and abuse" within the state's Medicaid program, particularly targeting providers accused of illegal activities. "We are targeting providers we believe who engaged in illegal activity ranging from money laundering to kickbacks to improper billing and other fraudulent activities," Hochul said.
This enforcement action is the latest in the governor's administration's efforts to increase oversight of adult day care programs. Hochul's office stated that since she took office in 2021, these efforts have led to over $15 billion in Medicaid savings. The state is working to curb fraud within its approximately $116 billion Medicaid program, which provides healthcare benefits to low-income residents.
The investigation comes amid ongoing scrutiny of the state's handling of its Medicaid program. The administration has faced legal challenges regarding its overhaul of the consumer-directed home care program, which federal prosecutors have alleged was improperly managed. The administration has denied these allegations.