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Two Women Plead Guilty to Running $68 Million Medicaid Fraud Scheme

It's not just Minneapolis, and it's not just childrens' daycares that are riddled with fraud. Two women in Brooklyn have pleaded guilty to defrauding Medicaid of $68 million by running adult daycare centers where services were never provided.

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… same playbook as Minneapolis - fake care centers billing taxpayers for phantom services.

The program they hit: CDPAP, where people with minimal healthcare experience get paid by Medicaid to care for relatives. Hundreds of "middleman" firms act as payroll agents with almost zero oversight.

It's basically a government ATM if you know how to game it.

They're forking over $1M, facing 10 years max. That's $68M stolen, $1M returned. Math works if you don't get caught.

Source: DOJ, New York Post

The Department of Justice released a statement this week:

Two defendants pleaded guilty today to conspiring to defraud Medicaid by paying health care kickbacks for services that were not provided at two Brooklyn social adult day cares and a home health care company.

“The defendants were large-scale recruiters who bribed patients with laundered cash and billed Medicaid over $68 million for services that were not provided,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Today’s guilty pleas demonstrate the Department’s longstanding commitment to rooting out fraud in government health care programs by aggressively prosecuting those who steal from taxpayer-funded programs.”

According to court documents, Manal Wasef, 46, and Elaine Antao, 46, both of Brooklyn, were marketers and recruiters for two social adult day cares: Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., as well as Responsible Care Staffing Inc., a home health care fiscal intermediary. Between approximately October 2017 and July 2024, in exchange for illegal kickbacks and bribes, Wasef and Antao referred Medicaid recipients to the social adult day cares and the home health company. The defendants also paid illegal kickbacks and bribes to Medicaid recipients for social adult day care services and home health care services that were billed to Medicaid but were not provided or that were induced by kickbacks and bribes. Wasef and Antao used multiple business entities to launder the fraud proceeds and generate the cash used to pay kickbacks and bribes. In connection with their guilty pleas, Wasef and Antao agreed to collectively forfeit approximately $1 million. Wasef and Antao are the sixth and seventh individuals, respectively, to plead guilty in this case.

Wasef and Antao pleaded guilty to conspiracy to commit health care fraud. Antao is scheduled to be sentenced on May 20 and Wasef is scheduled to be sentenced on May 27. They each face a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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Mayor Mamdani will get right on it, we're sure.

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We need more than citizen journalists knocking on the doors of these "daycares."

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