Judge Hammers $64M Medicaid Ringleader

Federal prosecutors say a Brooklyn adult day care owner helped drain Medicaid by $56 million, and a judge just sent her to prison for 76 months.

Story Snapshot

A federal judge sentenced Zakia Khan to 76 months for leading a $64 million Medicaid fraud and kickback scheme.
Khan pleaded guilty in 2025 to two conspiracies tied to health care fraud and illegal kickbacks.
Prosecutors say Medicaid paid about $56 million on false claims between 2017 and 2024.
The court ordered over $56 million in restitution and $5 million in forfeiture, including seized assets.

What The Court Decided

United States District Judge Natasha C. Merle sentenced Brooklyn adult day care owner Zakia Khan to 76 months in prison. The court also imposed over $56 million in restitution and ordered $5 million in forfeiture tied to fraud proceeds. The United States Department of Justice said Khan led a scheme that billed Medicaid about $64 million, with roughly $56 million actually paid. The sentence followed Khan’s August 2025 guilty plea to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks.

The fraud, according to prosecutors, ran from about October 2017 through July 2024. The plan centered on two Brooklyn social adult day care companies and a related home care financial intermediary. Marketers recruited Medicaid recipients with cash and gifts. The operators then billed for services that were not provided or not needed. The Department of Justice said agents seized cash, gold jewelry, and two properties connected to the proceeds. Those assets are part of the $5 million forfeiture.

How The Scheme Worked

Charging papers and later plea materials describe a kickback chain. Marketers paid Medicaid recipients to enroll and attend. The adult day cares billed for the visits, often for services not actually delivered. A financial intermediary linked to home care helped route claims and money. The approach fit a repeat pattern that federal agents have seen in New York adult day care cases. The model rewards high volume and easy sign-ups, which can blur the line between real care and fake claims.

Federal officials first charged eight people in October 2024 for this broader scheme. The group included operators at the two adult day care centers and the financial intermediary. The indictment put the alleged fraud around $68 million. The later sentencing documents place total billed claims at about $64 million. Prosecutors often refine dollar figures as they firm up paid claims and loss counts before sentencing, which can explain the change in totals across filings.

Why This Case Matters Beyond Brooklyn

The case highlights a national push on health care fraud. The Department of Justice has led repeat sweeps charging hundreds of defendants tied to false claims. These cases stress a core theme: weak oversight and volume-driven payment systems invite abuse. When government programs pay per visit or per member, bad actors can chase headcounts instead of care. Families and honest providers then face longer waits, higher costs, and shaken trust in safety-net programs.

New Yorkers across the political spectrum see the same warning light. Conservatives point to waste, weak controls, and insiders who game the rules. Liberals point to vulnerable seniors being used as tools and funds not reaching real care. Both sides see a system that lets middlemen profit while taxpayers and patients lose. This case offers a rare clean outcome: a conviction, prison time, restitution, and forfeiture. But it also shows how long such schemes can run before they are stopped.

What Was Proven And What Was Seized

Khan admitted to the conspiracies tied to health care fraud and illegal kickbacks. The court record links her to the two adult day cares in Brooklyn at the center of the scheme. Prosecutors say the claims falsely stated that services were provided and eligible. The judge credited the government’s loss analysis in setting restitution above $56 million. Agents seized two properties, cash, and gold jewelry during the probe. Those items are included in the $5 million forfeiture order.

Brooklyn Daycare Owner Sentenced to 76 Months for $64 Million Medicaid Fraud https://t.co/Fy0AC4PexS

— DLW 🔥#MAGA (@Dlw20161950) September 13, 2026

The government’s account is well-documented through the plea and sentencing releases. Some items, like claim-level billing or undercover footage, are not public in detail. That is normal for many criminal cases. The core facts—guilty plea, dates of conduct, paid loss, and sentence—are settled. For everyday Americans, the signal is clear: when oversight fails, taxpayer money bleeds out fast. Rebuilding trust will require tighter controls, faster audits, and real penalties for those who cheat the system.