Posted on 09/09/2026 3:42:55 PM PDT by CFW
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Zakia Kahn was sentenced by United States District Judge Natasha C. Merle to 76 months in prison in connection with her leadership role in carrying out a $64 million Medicaid fraud and illegal kickback scheme at her two social adult daycare centers and a home health care company. In August 2025, Khan pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. As part of her sentence, Kahn was also ordered to pay over $56 million in restitution and to forfeit $5 million in fraud proceeds, including two properties, cash, and gold jewelry seized during a search of her home, as pictured below.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Colin M. McDonald, Assistant Attorney General of the Justice Department’s National Fraud Enforcement Division; Pete Gizas, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York); Miranda L. Bennett, Acting Deputy Inspector General for Investigations, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the sentence.
“Today’s sentencing sends a strong message of deterrence in our District,” stated United States Attorney Nocella. “Our Office and the Justice Department are focused on protecting American taxpayers from fraudsters and as such, we will vigorously prosecute corrupt health care owners and operators in our district.”
“Khan acted with staggering greed, leading a scheme to defraud Medicaid of millions of dollars intended for people in need. She and her co-conspirators set up social adult daycares but, instead of providing care and services to our most vulnerable neighbors, they enriched themselves with cash, gold, and property,” said HSI Acting Special Agent in Charge Gizas. “Today’s sentence sends a message: we will be relentless in our pursuit of justice against fraudsters. HSI is working side by side with our law enforcement partners to uncover and dismantle complex fraud networks like this one.”
“Social adult day care and home health services are designed to support seniors, not line the pockets of fraudsters,” said HHS-OIG Acting Deputy Inspector General Bennett. “Today’s sentence sends an important message that anyone who illicitly exploits the Medicaid program will be held accountable to the full extent of the law.”
“Zakia Khan stole $64 million from Medicaid through bribes and kickbacks—money meant to support the most vulnerable,” said NYPD Commissioner Tisch. “This was not only deeply illegal but also immoral, and the NYPD will continue to investigate anyone who exploits government programs for personal gain. I thank our NYPD investigators and all our partners in law enforcement for their work in stopping this criminal and bringing this case to a close.”
According to court documents, Khan owned two social adult daycare centers—Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc. (Family Social) in the Coney Island section of Brooklin. She also owned a home health care fiscal intermediary called Responsible Care Staffing Inc. and an entity she used to receive and disguise fraud proceeds called Tanwee Services Inc.
From approximately October 2017 through July 2024, in exchange for kickbacks and bribes, a web of marketers referred Medicaid recipients to Khan’s social adult daycare centers. As depicted in the pictures below, Khan and the marketers paid kickbacks and bribes to the Medicaid recipients to induce them to sign up for services that Khan then billed to Medicaid. These services were never actually provided as represented to Medicaid.
Between 2017 and 2024, Happy Family and Family Social fraudulently billed Medicaid approximately $64 million. Medicaid paid approximately $56 million based on these false and fraudulent claims. Khan and her co-conspirators used multiple business entities to launder the fraud proceeds and generate the cash used to pay kickbacks and bribes to the marketers and the Medicaid recipients.
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Does anyone in government have oversight responsibilities for cases such as this? If so, they too should be investigated for not monitoring this situation.
Also from today,
“Treasury Uncovers $17.5 Billion in Suspected Health Care Fraud”
https://home.treasury.gov/news/press-releases/sb0625
September 9, 2026
WASHINGTON—The U.S. Department of the Treasury today announced that its Financial Crimes Enforcement Network (FinCEN) has identified approximately $17.5 billion in suspicious financial activity potentially linked to health care fraud, underscoring the Trump Administration’s commitment to eliminating fraud, protecting taxpayers, and safeguarding the integrity of federal health care programs.
“By identifying and reporting this suspicious activity, financial institutions have given law enforcement critical insight into the illicit actors who deliberately exploit U.S. health care benefits programs,” said Treasury Secretary Scott Bessent. “Treasury will continue working alongside our law enforcement partners to disrupt fraud wherever it occurs, protect Americans, and safeguard the integrity of taxpayer-funded programs.”
This fraud has been going on for years. Much of it started under Obama’s administration but Biden’s administration put it on steroids. Democrats ignored all the red flags and SARS reporting in order to fund illegal aliens and get them on the voter rolls.
In this case, $ 842,105 per month of incarceration.
Surely seems like "smoke and mirrors" and essentially minor sentences is doing little to stem the fraud endemic to the nation.
Maybe there shouldn’t be a Medicade in the first place.
“I wonder how many Democrat politicians have received kickbacks from these schemes.”
I’ll venture to guess...ALL OF THEM!
Glad to see this. Now, do the rest of these fraudulent ‘businesses’ and get back whatever Taxpayer Dollars you can!
Say what you will about President Trump. Personally, I LOVE the guy, but he has done more to ‘pull back the curtain’ on all the fraud, waste and abuse than anyone before him, and sadly, after him. MAGA!
Thank you David Hoch and Nick Shirley.
Is anyone else tired of reading about fraud against the government?
We should pull out an organ of theirs for each year in prison, to help pay for their time and give extra life time to a US citizen.
While perhaps a tad harsh, we are on the same page....
Ok, all these frauds have been identified, where’s the part where we recoup monies?
Ok, all these frauds have been identified, where’s the part where we recoup monies?
We should not only take the assets of those arrested, but we should also confiscate the assets of every family member.
Exactly! Those are pretty good taxpayer-funded wages. Not too many people make $894,736.84/mo. Maybe we should tattoo a big red “F” on his forehead for “fraudster”.
We know of the fraud in MN, but has anyone heard of a single politician going to jail?
More like overlook responsibilities.
They used to hang horse thieves.
“We know of the fraud in MN, but has anyone heard of a single politician going to jail?”
Nope. Not a one.
Speaking of MN, from today....
“Couple in Feeding Our Future Fraud Scheme Sentenced to 97 Months’ Imprisonment”
“MINNEAPOLIS – United States Attorney Daniel N. Rosen announced today that Mekfira Hussein and Abduljabar Hussein have been sentenced to a total of 97 months in prison for their roles in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic. The Husseins submitted fraudulent claims for meals and ultimately obtained approximately $8.8 million in federal child nutrition program funds.
The defendants were sentenced before U.S. District Judge Nancy E. Brasel on September 8, 2026.
Mekfira Hussein, 42, of Shakopee, Minnesota, was sentenced to 57 months in prison on one count of conspiracy to commit wire fraud. She pleaded guilty on January 31, 2025.
Abduljabar Hussein, 45, of Shakopee, Minnesota, was sentenced to 40 months in prison on one count of conspiracy to commit wire fraud. He pleaded guilty on February 5, 2025.
“The Husseins stole money that was meant for vulnerable children. Their sentences today reflect my office’s commitment to holding those who defraud the American taxpayer accountable,” said United States Attorney Daniel N. Rosen. “
So Trump wins. Wouldn’t it be smarter for them to close shop and leave the US once they’ve cashed out?
I flagged a bill from the hospital for a process called unbundling . It is where you take one test or procedure and split it into two billable codes. It was for a basic metabolic panel and a liver function test. It should have been billed as a comprehensive metabolic panel. This increases their reimbursement by a little bit. However as hundreds of these tests are ordered everyday it adds up.
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