An indictment has been unsealed in Brooklyn, New York, charging eight individuals with allegedly defrauding Medicaid of approximately $68 million. The scheme involved two social adult day care centers and a home health care financial intermediary that reportedly paid kickbacks and bribes for services not rendered.
According to court documents, Zakia Khan and Ahsan Ijaz owned Happy Family Social Adult Day Care Center Inc., Family Social Adult Day Care Center Inc., and Responsible Care Staffing Inc. These entities were used to exploit the New York Medicaid Consumer Directed Personal Assistance Services Program (CDPAP). Starting around October 2017, marketers Elaine Antao, Omneah Hamdi, and Manal Wasef allegedly referred Medicaid recipients to these centers in exchange for kickbacks. Ansir Abassi and Amran Hashmi managed the operations along with the marketers. Seema Memon, an employee previously charged by complaint on July 1, was also indicted.
Principal Deputy Assistant Attorney General Nicole M. Argentieri stated: “As alleged in the indictment, these defendants orchestrated a years-long scheme to defraud Medicaid of tens of millions of dollars for social adult day care and home care services for seniors that they did not provide.”
U.S. Attorney Breon Peace commented: “Social adult day care and home health services are meant to help seniors, but as alleged, the defendants allegedly turned their businesses into a brazen cash grab of millions of dollars from the Medicaid program.”
Special Agent Naomi Gruchacz emphasized HHS-OIG's commitment to investigating such frauds: “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds.”
Interim Commissioner Thomas G. Donlon warned against exploiting essential health networks: “Let it be clear: anyone who attempts to profit by defrauding the system will face consequences.”
Special Agent William S. Walker highlighted HSI’s focus on dismantling financial fraud schemes: “Today’s announcement underscores the HSI New York El Dorado Task Force’s unrelenting focus on dismantling and disrupting financial fraud schemes that exploit the American public.”
Khan faces multiple charges including conspiracy to commit health care fraud and money laundering. If convicted, she could face up to 20 years in prison per count for money laundering-related charges.
Abassi, Antao, Hamdi, Ijaz face similar charges with potential sentences up to 20 years for money laundering-related offenses if convicted.
Hashmi is charged with conspiracy related crimes which carry a maximum penalty of 10 years per count if convicted.
Memon is facing similar charges with possible sentences reaching 10 years per count if found guilty.
Wasef is charged with conspiracy counts carrying potential penalties up to 10 years if convicted.
The investigation is being conducted by HHS-OIG, NYPD, and HSI. Trial Attorney Patrick J. Campbell from the Criminal Division’s Fraud Section is prosecuting alongside Assistant U.S. Attorney Tanisha R. Payne handling forfeiture matters.
The Fraud Section leads efforts against healthcare fraud through its Health Care Fraud Strike Force Program which has charged over 5,400 defendants since March 2007.
It should be noted that an indictment merely contains allegations; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.