BROOKLYN, NY – A 54-year-old Brooklyn woman has pleaded guilty to leading a massive fraud scheme that siphoned more than $68 million from Medicaid through her adult day care businesses.
Zakia Khan, the owner of two Brooklyn-based adult day care centers—Happy Family Social Adult Day Care Center and Family Social Adult Day Care Center—admitted to conspiracy to commit health care fraud and conspiracy to pay and receive illegal health care kickbacks.
Between October 2017 and July 2024, Khan and her associates bribed Medicaid recipients to attend her day care centers, billed Medicaid for services that were either unnecessary or never provided, and paid kickbacks to ensure continued participation. Khan also used multiple businesses to launder the fraudulent proceeds, including Responsible Care Staffing Inc. and Tanwee Services Inc.
As part of her guilty plea, Khan agreed to forfeit $5 million, including seized properties, cash, and gold jewelry. She faces up to 15 years in prison when sentenced on January 28, 2026.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Homeland Security Investigations (HSI), and the NYPD.
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Key Points
- Zakia Khan pleaded guilty to orchestrating a $68 million Medicaid fraud through Brooklyn adult day cares.
- The scheme involved bribes and kickbacks paid to Medicaid recipients for services not rendered.
- Khan agreed to forfeit $5 million and faces up to 15 years in prison when sentenced in January 2026.
