New York: Federal Agents Raid Adult Day Cares in Sweeping Medicaid Fraud Probe

FBI, HSI and other federal and state agencies raided social adult day care centers in Brooklyn, Queens and Staten Island over suspected Medicaid fraud; the CMS administrator personally delivered warning letters.
Why it matters
On October 20, the FBI's New York office, Homeland Security Investigations (HSI), the New York State Office of the Medicaid Inspector General (OMIG), the IRS, the NYPD and the Centers for Medicare & Medicaid Services (CMS) jointly raided several social adult day care centers in Brooklyn, Queens and Staten Island, New York City, over suspected Medicaid fraud. The investigation has been running for months.
Full report
At the Happy Adult Day Care Center on Fort Hamilton Parkway in Borough Park, Brooklyn, agents removed six boxes of materials, two computers and one large plastic bin at around 1:30 p.m. An FBI spokesperson confirmed it was a court-authorized law enforcement action. The investigation is ongoing, and it is not yet clear whether anyone was arrested.
CMS Administrator Dr. Mehmet Oz personally delivered warning letters at Kent Senior Care and Evergreen Adult Day Care in Flushing (first stop around 8:30 a.m.); CMS conducted more than 80 in-person warnings across the city that day.
Governor Hochul called it a massive effort to combat fraud and abuse at a briefing, citing allegations of money laundering, kickbacks and improper billing — charging public programs for care or transportation services never provided. She stressed these are allegations under investigation, not convictions. New York State spends about $116 billion a year on Medicaid; Hochul said tightened oversight since she took office in 2021 has recovered more than $15 billion.
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