A Brooklyn adult day care owner who helped drain tens of millions from Medicaid is headed to federal prison for more than six years, and ordered to repay over $56 million.
Story Snapshot
- A federal judge sentenced Zakia Khan to 76 months for a $64 million Medicaid fraud and kickback scheme.
- Khan pleaded guilty in 2025 to conspiracy charges tied to adult day care and home care referrals.
- Prosecutors say Medicaid paid about $56 million on false claims from 2017 to 2024.
- The court ordered over $56 million in restitution and $5 million in forfeiture, including seized assets.
What The Court Decided
On September 10, 2026, in Brooklyn federal court, Judge Natasha C. Merle sentenced Zakia Khan to 76 months in prison. Prosecutors said she led a scheme that used two Brooklyn social adult day care centers and a home-care intermediary to submit false Medicaid claims. The government said the fraud billed about $64 million and secured about $56 million in payments. The judge also ordered more than $56 million in restitution and $5 million in forfeiture tied to seized cash, jewelry, and properties.
Federal filings state that Khan pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. The charges described paying illegal kickbacks to recruit Medicaid recipients, then billing for services that were not provided or not needed. The plea resolved charges first brought in a multi-defendant case. The government has said eight people were charged in the broader conspiracy that centered on Brooklyn adult day care operations.
How The Scheme Worked, According To Prosecutors
From about October 2017 through July 2024, marketers working with Khan steered people to her adult day care centers and to a connected home-care financial intermediary. In return, those marketers and recipients received illegal payments. The scheme then billed Medicaid for services tied to those referrals. Prosecutors identified the centers as Happy Family Adult Day Care and Family Social Adult Day Care. The case materials describe a cycle of kickbacks, referrals, and false claims that rewarded volume over actual care.
The Justice Department said agents found proceeds in cash, gold jewelry, and real estate. Those items are part of the $5 million forfeiture order. The court’s restitution figure, set at more than $56 million, tracks what Medicaid allegedly paid out on false claims. Officials also linked the case to a wider health care fraud push that has charged hundreds of defendants in recent national sweeps targeting kickbacks and false billing across programs that serve seniors and people with disabilities.
Why This Matters For Taxpayers And Patients
This case highlights how weak controls in high-volume programs can invite abuse. Social adult day care and related home-care services can help seniors stay safe and independent. But when payments rise with each new enrollee or visit, bad actors can chase headcount instead of care. New York’s adult day care space has drawn repeated federal cases for kickbacks and billing fraud, showing a repeatable playbook that exploits public funds and leaves needy patients at risk.
Brooklyn Daycare Owner Sentenced to 76 Months for $64 Million Medicaid Fraud https://t.co/Fy0AC4PexS
— DLW 🔥#MAGA (@Dlw20161950) September 13, 2026
Voters across the spectrum worry that government cannot police massive programs well. Conservatives see waste that drives higher taxes and crowds out priorities. Liberals see funds stolen from real care and community support. This sentence delivers accountability in one case, but the pattern suggests a bigger task. Stronger audits, tighter enrollment checks, and fast data reviews are needed to stop fraud early. Clear rules and quick penalties can protect patients and taxpayers at the same time.
Sources:
homehealthcarenews.com, justice.gov, nypost.com
