Federal, state and city investigators searched about a dozen adult day care centers across New York City on Tuesday as part of a sweeping investigation into alleged Medicaid fraud, reported the New York Times.
Investigators are examining allegations that some operators billed Medicaid for clients who never received services or had died, the Times reported, citing three people familiar with the matter. The FBI’s New York office confirmed in a statement that it was conducting law enforcement activity with other agencies in Brooklyn, Queens and Staten Island as part of ongoing federal investigations.
Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, was present at one or more search locations, according to people familiar with the investigation.
The actions are part of a broader federal and state crackdown involving the FBI, Internal Revenue Service, Department of Health and Human Services, New York state agencies and the NYPD. Investigators also visited other facilities and issued legal notices that one person familiar with the matter described as similar to cease-and-desist letters.
The investigations include a separate inquiry led by Staten Island District Attorney Michael E. McMahon’s office into an adult day care center operated by three family members. Prosecutors were expected to announce charges Wednesday, the Times reported.
The operators are expected to face allegations that they fraudulently billed Medicaid hundreds of thousands of dollars for services to clients who were deceased or did not attend the center, according to the report.
Gov. Kathy Hochul’s office said the state is working with federal authorities as part of a months-long investigation into New York’s Social Adult Day Care program, known as SADC.
According to the governor’s office, the investigation has examined allegations of fraud at more than 100 adult day care centers across the state. The searches come as the Trump administration increases scrutiny of alleged fraud in adult and child care programs, with officials frequently highlighting cases in Democratic-led states.
