Staff Reports
The big news out of Brooklyn this week is simple: Zakia Khan was sentenced to 76 months in federal prison for running a massive Medicaid fraud and kickback scheme tied to adult day care centers and a home‑health intermediary. Court filings show her businesses billed Medicaid about $64 million between 2017 and 2024, and Medicaid paid roughly $56 million on those false claims. A judge ordered more than $56 million in restitution and the forfeiture of about $5 million in cash, property and jewelry. This is a clear win for law enforcement — and a reminder of how easily federal dollars can be stolen when watchdogs look the other way.
How the scheme worked
Prosecutors say Khan owned two social adult day care centers, Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., plus a fiscal intermediary called Responsible Care Staffing Inc. and a shell called Tanwee Services Inc. Marketers were paid to recruit Medicaid recipients and the recipients were paid to sign up and pretend they attended services. Undercover tapes, seizure of cash and gold jewelry, and falsified attendance sheets were part of the evidence. In short: seniors and the taxpayer got ripped off so a few people could collect kickbacks and buy bling instead of providing care.
Who brought the case and why it matters
The case was prosecuted by the Department of Justice’s National Fraud Enforcement Division with the U.S. Attorney’s Office for the Eastern District of New York. United States Attorney Joseph Nocella Jr. said the sentence sends a strong message, and officials from HHS‑OIG and Homeland Security Investigations called the conduct “staggering greed.” Khan pleaded guilty last year and this week United States District Judge Natasha C. Merle imposed the sentence. This prosecution is part of a wider federal push to crack down on adult day care and home‑health fraud that has cost taxpayers millions.
What this should teach policymakers
Conservatives who care about honest government should cheer the result, but not stop there. When a single operation bills tens of millions, it shows gaps in oversight and payment controls. The Justice Department’s effort supports the Administration’s Task Force to Eliminate Fraud, chaired at the White House level, but Congress and state Medicaid agencies must also tighten rules, improve audits, and stop middlemen who exist only to skim. Taxpayer dollars meant for seniors shouldn’t be turned into someone’s retirement Rolex.
Bottom line
Khan’s sentencing is a strong signal: steal from Medicaid and you will face federal consequences. Still, getting restitution and recovering stolen funds is often slow and incomplete. Americans should demand aggressive enforcement and smarter checks up front so fraudsters can’t turn care programs into personal cash machines. For now, the courtroom victory is real. Let’s hope the money and lessons follow.
