BROOKLYN, N.Y. – Two Brooklyn women have pleaded guilty to participating in a massive Medicaid fraud and kickback scheme that funneled more than $68 million in taxpayer funds through fake claims tied to adult day care centers and a home health care business, federal prosecutors announced Thursday.
In a proceeding before U.S. District Judge Natasha C. Merle, defendants Elaine Antao and Manal Wasef admitted to conspiring to defraud Medicaid by paying and receiving illegal health care kickbacks connected to two Brooklyn social adult day care centers — 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. Both face up to 10 years in prison when sentenced.
Prosecutors said that from October 2017 through July 2024, Antao and Wasef acted as recruiters, steering Medicaid recipients to the facilities in exchange for bribes and paying cash kickbacks to patients to generate fraudulent claims for services that were either unnecessary or never rendered. The defendants allegedly laundered proceeds through multiple business entities to conceal their illegal payments and generate cash for the ongoing scheme.
“As demonstrated by today’s guilty pleas, our Office will hold accountable corrupt individuals who steer patients to health care providers in exchange for illicit kickbacks,” said U.S. Attorney Joseph Nocella Jr. “We will continue to investigate and aggressively prosecute fraud schemes that steal from taxpayer funds.”
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division called the operation a large-scale Medicaid exploitation. “The defendants were large-scale recruiters who bribed patients with laundered cash and billed Medicaid over $68 million for services that were not provided,” Duva said.
Naomi Gruchacz, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General, said the defendants’ actions “jeopardized the availability of federal health care program funds intended to support millions of beneficiaries.”
HSI Special Agent in Charge Ricky J. Patel said the case illustrates how greed undermines essential services. “These defendants placed profit over people and public well-being and stole $68 million in welfare funds meant for those who need it most,” he said.
Antao and Wasef have agreed to collectively forfeit approximately $1 million as part of their plea agreements. They are the sixth and seventh defendants to plead guilty in the ongoing federal investigation.
Two Brooklyn women admitted to defrauding Medicaid of $68 million through kickbacks and false claims tied to adult day care and home health services.
