Zakia Khan Pleads Guilty to $68M Adult Social Day Care and Home Health Care Medicaid Fraud Scheme in New York
By the Constantine Cannon听Whistleblower Team
On August 6, the government announced that Zakia Khan pleaded guilty in federal court to conspiring to defraud Medicaid of roughly $68 million through kickbacks and bribes at two New York-based social adult day care centers that she owned in Coney Island called Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc. (Family Social), a home health care fiscal intermediary. Khan鈥檚 Tanwee Services Inc. was an entity used to receive and launder the fraud proceeds.1
Khan鈥檚 Sentencing and Forfeiture
Upon sentencing, Khan will face a maximum sentence of 15 years in prison. Khan agreed to forfeit $5 million, several properties, and over $300,000 in cash and gold jewelry seized by law enforcement during a home search, as part of her plea agreement.2
Comments on This Case
Deputy Inspector General for Investigations Christian J. Schrank of the HHS-OIG explained, 鈥淪ocial adult day care and home health services are intended to support seniors, not serve as vehicles for fraud.听The defendant鈥檚 actions are an affront to hardworking taxpayers and undermine the integrity of our nation鈥檚 health care system. HHS-OIG will continue to relentlessly pursue anyone who illicitly exploits Medicaid enrollees and the program itself to ensure they are held fully accountable.鈥�
鈥淶akia Khan has admitted her involvement in a sweeping scheme that defrauded the U.S. government of $68 million in welfare funds meant for one of our country鈥檚 most vulnerable populations. Today鈥檚 guilty plea underscores not only the lengths criminal opportunists often take, but also the state-of-the-art skills and procedures utilized by HSI New York to stop them in their tracks,鈥� said HSI New York Special Agent in Charge Ricky J. Patel.3
Kickbacks and Bribes at Happy Family and Family Social
According to court filings, from October 2017 through July 2024, Khan and her marketer employees referred Medicaid recipients for services at Happy Family and Family Social.听They paid kickbacks and bribes to Medicaid recipients for social adult day care services that the facilities billed to Medicaid but 鈥渨ere not provided or were induced by kickbacks and bribes.鈥�
Khan鈥檚 Business Entities Laundered Health Care Fraud Money
Khan and her co-defendants used business entities to disguise the health care fraud money and generate cash to pay the kickbacks and bribes.听Two co-defendants, Seema Memon and Amran Hashmi, were employees of Khan who previously pleaded guilty and are awaiting sentencing.听There are eleven additional co-defendants awaiting trial.4
Health Care Fraud
Health Care fraud听can include upcoding, taking听kickback听payments for services or patient referrals, billing for听medically unnecessary services, making false statements about covered services, and more. It is important to recognize fraud and take a stand against misconduct.
How Can Whistleblowers Expose Health Care Fraud?
Although this case did not mention whether whistleblowers were involved, the government actively relies on individuals to come forward with information that can lead to enforcement actions and help hold fraudsters accountable.
Under the听qui tam听(or whistleblower provisions) of the False Claims Act, private parties can file lawsuits on behalf of the government and receive a share of up to 30% of the recovery from successful enforcement actions.
Our Firm Helps Health Care Fraud Whistleblowers
鈥淩eporting Medicaid abuse and other types of health care fraud protects patients and helps defend the integrity of our health care system. Our firm represents health care fraud whistleblowers who speak up against such misconduct,鈥� said 91pornattorney Ginger Buck.
91pornhas extensive experience representing health care fraud whistleblowers. Please听contact听us if you believe you have a case.听We will connect you with an experienced member of the 91pornwhistleblower听team听for a free and confidential consultation.
Speak Confidentially With Our Whistleblower Attorneys
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Tagged in: Anti-Kickback and Stark, Healthcare Fraud, Medicaid fraud, Upcoding,