Federal agents raid NYC adult day care centers in fraud crackdown

Federal Agents Raid New York City Adult Day Care Centers in Medicaid Fraud Crackdown

Federal law enforcement agencies fanned out across New York City on Tuesday, executing search warrants at multiple adult day care centers in an investigation targeting healthcare fraud, money laundering, and kickbacks.

Investigators loaded evidence boxes from sites in Brooklyn, Queens, Staten Island, and Flushing. Homeland Security Investigations agents operated outside facilities in the Sunset Park and Borough Park neighborhoods of Brooklyn, according to the New York Post. Meanwhile, agents from the FBI, the NYPD, and the IRS descended on addresses including 4022 8th Avenue, as reported by Boro Park 24.

Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz visited two locations in Flushing, Queens, delivering warning letters to Kent Senior Care and Evergreen Adult Day Care, Fox News Digital reported. Oz challenged facility directors over attendance records and billing practices during the visit.

The bills are much higher than they should be, Oz told a center director, questioning why records indicated seniors attended five days a week when managers acknowledged many participants typically arrived only two or three days. The director insisted the facility billed only for actual attendance, disputing federal counts after Oz observed significantly fewer people on site during the walk-through.

Governor Hochul Cites Monthslong Investigation Into New York Medicaid Costs

New York Kathy Hochul confirmed the state’s involvement in the coordinated enforcement action on Tuesday. Hochul stated that her administration worked directly with federal officials in Washington, D.C., to target providers allegedly engaged in improper billing, kickbacks, and money laundering.

We are targeting providers who we believe engaged in illegal activity, ranging from money laundering, to kickbacks, to improper billing, Hochul said. State officials reported that oversight measures implemented since 2021 have saved over $15 billion within New York’s broader $116 billion Medicaid program.

Federal Data Reveals New York Claims Nation’s Highest Medicaid Day Care Spending

A CBS News data analysis published over the summer found that Medicaid paid adult daycare providers $3.35 billion nationwide in 2024, with New York facilities absorbing 17% of that total—more than any other state. On Tuesday afternoon, the FBI released a social media video stating that an audit between 2019 and 2024 revealed New York Medicaid costs ran 40% to 60% above the national average per enrollee.

HSI stated via social media that billing public programs for phantom services constitutes fraud rather than simple paperwork errors.

Frequently Asked Questions About the New York Medicaid Fraud Raids

Which law enforcement agencies participated in the Tuesday raids?

The coordinated sweep involved the FBI, Homeland Security Investigations, the NYPD, and the IRS, with state health officials and CMS Administrator Dr. Mehmet Oz also taking part in inspections across Brooklyn, Queens, and Staten Island, according to Fox News Digital and ABC7 New York.

Were any arrests made during the day care searches?

The Staten Island district attorney confirmed that at least two arrests occurred during the operation, though specific details regarding individuals charged and evidence recovered remained limited while investigations continue, as reported by ABC7 New York.

What specific allegations are investigators leveling against the day care providers?

Federal officials are targeting providers over suspected healthcare fraud, improper billing for services never rendered, kickback schemes, and money laundering tied to social adult day care programs, according to statements from Kathy Hochul and Homeland Security Investigations.