Two arrested, dozens raided as part of major Medicaid fraud crackdown in New York City
On Tuesday, the Federal Bureau of Investigation and police in New York raided dozens of adult daycare centers throughout New York City as part of a targeted crackdown on Medicaid fraud.
In revealing the operation to the public, Gov. Kathy Hochul said the searches followed a months-long probe, where state and federal authorities worked together to investigate more than 100 providers of daycare and related healthcare services aimed at benefiting vulnerable adults with special needs.
The total number of organizations raided, including the names, was not revealed. To date, there have been at least two arrests, according to a report from ABC 7 in New York City. The two suspects are operators of a Staten Island adult daycare center, both suspected of having engaged in Medicaid fraud.
Staten Island District Attorney Michael McMahon said the defendants, who were not named, operated Staten Island Adult Day Care Center, which was allegedly the center of “widespread deception and brazen fraud” that totaled $530,000.
"Furthermore, these defendants allegedly stole an additional $13,000 by billing for services for at least 32 seniors that were either confirmed to be deceased or out of the country at the time of the apparent rendering of services," McMahon stated, adding that illegal activity occurred over a four-month period.
According to ABC 7, centers in Brooklyn and Queens were also raided as part of the FBI and state police operation, though few other details are known. It’s not clear if any of the centers are related.
HHS finds red flags
Federal authorities said the investigation stemmed from a U.S. Department of Health and Human Services (HHS) audit of the New York Medicaid program, which found that not all of the $2.4 billion spent on social and adult day care in the state between 2019 and 2024 was legitimate.
Hochul said she went to Washington, D.C. prior to the raids to meet Centers for Medicare & Medicaid Services Administrator Mehmet Oz, MD, who provided more details. She added that both state and federal law enforcement agencies are only looking to "weed out the abuse,” to protect patients and taxpayers from fraudsters.
The governor added that crimes range from “money laundering to kickbacks to improper billing and other fraudulent activities." The scope of the fraud, and whether or not any of it is connected, is still unknown.
This is a developing story.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.