A Brooklyn woman on Wednesday pleaded guilty to defrauding Medicaid through a $68 million adult day care fraud scheme.
The defendant, identified as Zakia Khan, 54, by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, was the owner of Happy Family Adult Day Care Inc. and Family Social Adult Day Care Inc., both in Coney Island.
From about October 2017 through July 2024, Khan and marketers she employed referred Medicaid recipients to Happy Family and Family Social. Khan and the marketers in turn paid kickbacks and bribes to Medicaid recipients for social adult day care services that Happy Family and Family Social billed to Medicaid, but were not provided or were induced by kickbacks and bribes, according to prosecutors.
Khan and her co-defendants used multiple business entities to launder the health care fraud proceeds totaling about $68 million and generate the cash used to pay kickbacks and bribes. Co-defendants Seema Memon and Amran Hashmi, who were employees of Khan and Brooklyn residents, previously pleaded guilty and are awaiting sentencing. Eleven additional co-defendants are awaiting trial.
“The defendant orchestrated a massive scheme to defraud Medicaid, bribing patients to bill a federal health care program over $68 million,” Acting Assistant Attorney Matthew R. Galeotti said in a statement. “Americans will not stand for these schemes that target government programs intended to help society’s most vulnerable members and steal from the public."
When sentenced, Khan faces up to 15 years in federal prison. As part of her plea agreement, Khan agreed to forfeit $5 million, including several properties, and more than $300,000 in cash and gold jewelry seized by law enforcement during a search of her home.
