Two operators of an adult daycare center in Staten Island have been arrested and charged with defrauding Medicaid of over $530,000 by billing for services provided to hundreds of seniors who were dead or living abroad. Yangsim Oum, 79, the owner of SI Day Care Center, Inc., and her daughter, Juyone Choe, 49, the program director, face multiple charges in an investigation dubbed “Operation Golden Grift” by the Staten Island District Attorney’s Office.
The pair are accused of submitting fraudulent claims for services allegedly provided between April 17 and August 25 of the same year. Prosecutors stated that approximately $13,000 of the fraudulent billing was for at least 32 individuals who were either deceased or not in the country at the time the services were supposedly rendered.
Staten Island District Attorney Michael McMahon announced the charges, describing Oum and Choe as “one of Staten Island’s most lucrative con artists” and accusing them of using seniors as pawns in a criminal enterprise. If convicted of the most serious charge, healthcare fraud in the second degree, they each face up to 15 years in prison. They also face numerous counts of falsifying business records.
McMahon indicated that this case might be indicative of a broader problem, suggesting that “countless other adult daycare centers are engaged in similar criminal activities” and that his office is only seeing “the tip of the iceberg.”
The arrests were part of a larger, coordinated crackdown across New York City involving state, local, and federal authorities targeting suspected fraud within the social adult daycare program. State Health Commissioner Dr. James McDonald stated that the investigation aims to combat illegal activities such as money laundering, kickbacks, and fraudulent billing, which have led to over 100 referrals for prosecution.
Agencies including Homeland Security Investigations were observed conducting operations at adult daycare facilities in Brooklyn, with agents collecting boxes of evidence. Dr. Mehmet Oz, administrator for the Centers for Medicare and Medicaid Services, visited two facilities in Queens as part of the ongoing effort.
Governor Kathy Hochul characterized the operation as a “massive effort to combat fraud and abuse,” involving collaboration between state and federal entities. Adult daycare centers are designed to provide care, meals, and activities for seniors with physical or cognitive impairments when family caregivers are unable to do so during the day.
Prosecutors emphasized that while some facilities are under investigation for alleged fraud, efforts are underway to ensure that the seniors relying on these centers for care are not displaced and are transitioned to legitimate providers. The investigation and subsequent arrests aim to prevent further victims of such alleged schemes.