Another Fraud Scheme Uncovered – You Won’t Believe What They’re Stealing Now

Seven years of unchecked government spending just evaporated into the pockets of two Brooklyn fraudsters who discovered that stealing from Medicaid requires no genius—just fake paperwork and relentless audacity.

Quick Take

Two Brooklyn residents pleaded guilty to a $68 million Medicaid fraud scheme operating undetected for seven years through fake adult day care centers and home health services
Federal prosecutors seized millions in assets while New York State officials admitted systematic oversight failures allowed perpetrators to collect $10 million annually in fraudulent payments
The scheme exposes a national Medicaid vulnerability where annual fraud and error losses reach $37 billion, with New York spending 2.5 times more per capita than Florida despite having fewer elderly residents
State legislators now demand comprehensive audits as Governor Hochul’s administration faces criticism for characterizing related programs as “a racket” before the fraud was discovered

The Seven-Year Heist Nobody Stopped

Elaine Antao and Manal Wasef, both 46 and from Brooklyn, operated a masterclass in government theft from October 2017 until July 2024. Their scheme required no sophisticated technology, no encrypted communications, no elaborate shell companies beyond what appeared on paper. They simply recruited fake patients through cash kickbacks, billed Medicaid for services never provided, and collected payments while state administrators looked the other way. On January 15, 2026, both pleaded guilty to conspiracy to defraud Medicaid, agreeing to forfeit approximately $1 million—a fraction of their haul.

How Two Recruiters Stole From Millions

Antao and Wasef operated as marketers and recruiters for fraudulent entities: Happy Family Social Adult Day Care Center Inc., Family Social Adult Day Care Center Inc., and Responsible Care Staffing Inc., a home health care fiscal intermediary. Their business model was elementary. They recruited fake patients by offering cash bribes, submitted fraudulent billing to Medicaid for services never delivered, and laundered proceeds through multiple business entities to fund continued bribery operations. Federal agents ultimately seized bank accounts, jewelry, real estate, and luxury items purchased with stolen taxpayer money.

The Oversight Collapse That Enabled Theft

New York State’s Medicaid administration failed catastrophically. State officials conducted no facility inspections, verified no actual service delivery, and interviewed no business owners despite annual payments of approximately $10 million to these fraudulent entities. New York Post reporters visiting just thirteen social adult day care facilities found little evidence of medical support, discovering instead facilities offering free lunch and games to able-bodied individuals. This wasn’t hidden—it was visible to anyone looking. Nobody looked.

The social adult day care program itself exploded from 40 facilities in 2013 to almost 400 by the time of this investigation, with centers appearing in storefronts, apartments, and basements across New York City’s five boroughs. This tenfold expansion occurred with minimal oversight, creating conditions that functioned as an open invitation to fraud.

The Broader Theft Nobody Discusses

This case represents a single prosecution within a systemic national problem. Federal estimates place annual Medicaid fraud and error losses at 6 percent of benefits—$37 billion in 2025 alone—though analysts argue actual waste substantially exceeds official counts. New York State’s Medicaid spending soared from $55 billion in 2013 to $116 billion by 2025, with federal taxpayers covering 60 percent of costs. The state spends 2.5 times more per capita than Florida despite having fewer elderly residents, suggesting structural inefficiencies beyond individual fraud cases.

Federal Prosecutors Confirm the Obvious

Federal prosecutors characterized this scheme as representative of broader Medicaid fraud patterns, noting that “no brilliant scheme is required”—perpetrators simply submit fake paperwork and receive government payments. The seven-year detection lag reflects inadequate state-level oversight and auditing. Minnesota’s Medicaid fraud scandal, involving investigations into more than a dozen social services programs with potential losses of $9 billion since 2018, demonstrates that large-scale Medicaid fraud is not unique to New York.

What Happens Now

The case remains active with ongoing investigations. Five additional individuals have already pleaded guilty prior to Antao and Wasef’s January 2026 guilty pleas, indicating the investigation expanded beyond primary operators. New York State Senate members called on Governor Hochul to undertake a comprehensive audit of Medicaid programs. Governor Hochul herself had previously characterized the Consumer Directed Personal Assistance Program as “a racket,” citing TikTok advertisements recruiting individuals at $37 per hour to care for relatives who may not actually need care—yet the fraud continued undetected for seven more years after that characterization.

Federal agents continue asset seizure and forfeiture proceedings. The guilty pleas and ongoing investigations signal increased federal prosecution activity in Medicaid fraud, though the ease of execution suggests systemic vulnerability will persist across state programs until oversight mechanisms fundamentally change.