Eight individuals associated with two Brooklyn social adult day care centers and a home health care intermediary have been charged in an alleged $68 million Medicaid fraud scheme. The defendants, including owners and staff from Happy Family Social Adult Day Care Inc., Family Social Adult Day Care Inc., and Responsible Care Staffing, Inc., are accused of paying kickbacks to recruit Medicaid beneficiaries, many of whom never received any services.
According to the indictment unsealed in the U.S. District Court for the Eastern District of New York, beginning in October 2017, the defendants allegedly paid bribes to both marketers and beneficiaries to enroll in services billed to Medicaid. Prosecutors claim these services were either not rendered or were fraudulently billed under New York’s Consumer Directed Personal Assistance Program (CDPAP). The CDPAP program was designed to support seniors and vulnerable individuals with activities of daily living by permitting family members to receive payment for assisting such Medicaid recipients. If convicted, the defendants face up to 20 years in prison for some charges.
This indictment reflects ongoing enforcement efforts targeting financial abuse in healthcare and serves as a warning that fraudulent activities against Medicaid and other federal programs will face strong prosecution.
