A Brooklyn adult daycare owner just got 76 months in federal prison for a $64 million Medicaid fraud built on kickbacks and fake claims.
Story Highlights
- A federal judge sentenced Zakia Khan to 76 months for a $64 million Medicaid fraud and kickback scheme.
- Prosecutors say the scheme ran from 2017 to 2024 and billed Medicaid about $64 million; about $56 million was paid.
- Khan pleaded guilty in August 2025 to conspiring to commit health care fraud and pay kickbacks.
- The court ordered over $56 million in restitution and $5 million in forfeiture tied to seized properties, cash, and gold.
What The Court Decided And Why It Matters
On September 10, 2026, a federal judge in Brooklyn sentenced Zakia Khan to 76 months in prison. Prosecutors said she ran two adult day cares that used illegal kickbacks to draw in Medicaid recipients, then submitted false claims. The government said the centers billed about $64 million, and Medicaid paid about $56 million on those claims. The judge also ordered over $56 million in restitution and $5 million in forfeiture, including properties, cash, and gold seized from Khan.
In August 2025, Khan pleaded guilty to two federal crimes. She admitted to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. Court records state the scheme ran from about October 2017 through July 2024. The case began with a wider indictment that charged eight people tied to two Brooklyn social adult day cares and a home health care financial intermediary.
How The Scheme Worked, According To Prosecutors
Prosecutors said marketers sent Medicaid recipients to Khan’s facilities in exchange for cash or gifts. Staff then billed Medicaid for adult day care services that were not provided or not needed. The United States Department of Justice said the operation relied on volume and repeated claims, which drove the total to about $64 million billed. An earlier charging release described the broader case as a kickback chain across adult day care and home care entities.
The federal account also links Khan’s role to assets traced to the fraud. The court ordered $5 million in forfeiture representing fraud proceeds, matching the plea deal terms. The government said agents seized two properties, cash, and gold jewelry from Khan’s home during the investigation. Those actions aim to claw back money and signal that health care fraud penalties are not just prison time, but also major financial losses.
Why This Case Fits A Bigger Pattern In New York
This case lines up with repeat problems in New York’s social adult day care and related home care programs. Federal and state actions have flagged weak oversight and incentives that reward sign-ups and headcounts over real care. The model is familiar: pay kickbacks, inflate attendance, and bill for visits that did not happen or were not justified. Federal officials have tied hundreds of defendants to health care fraud in recent takedowns, showing the scale of the issue.
🚨 MASSIVE WIN.
The Trump administration just moved from ARRESTS to RESULTS.
A Brooklyn adult daycare owner just got 76 MONTHS in prison for running a $64 MILLION Medicaid fraud + illegal kickback scheme.
Zakiya Khan now owes $56 MILLION in restitution. pic.twitter.com/qX42CvXfct— Julian Paul Assange (@QJulianPaul) September 13, 2026
For readers on the left and right, the through line is simple and troubling. A safety-net program meant to help seniors and people with disabilities got milked while taxpayers footed the bill. Honest providers lose, patients are treated like price tags, and faith in government management takes another hit. This sentence is a clear win for accountability, but it also shows how easy money can flow when oversight is slow and schemes move fast.
Sources:
homehealthcarenews.com, justice.gov, nypost.com