A Brooklyn adult day care owner was sentenced to more than six years in federal prison for leading a $64 million Medicaid fraud built on illegal kickbacks and fake claims.
Story Highlights
- A federal judge sentenced Zakia Khan to 76 months for a $64 million Medicaid fraud.
- Prosecutors said the scheme ran from 2017 to 2024 and used illegal kickbacks.
- Medicaid paid about $56 million on the false claims; restitution exceeds that amount.
- The case is part of a larger federal push against health care fraud nationwide.
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. The court found she led a plan that billed Medicaid about $64 million through two Brooklyn social adult day care centers and a related home health business. The Department of Justice said the plan relied on kickbacks and bribes paid to bring in Medicaid recipients and to steer billing for services that were not provided or were not allowed. The judge also ordered restitution of over $56 million and forfeiture of $5 million.
Prosecutors said the scheme ran from about October 2017 through July 2024. During that time, Khan and her associates used marketers to recruit seniors and other beneficiaries. They then billed Medicaid for adult day care visits and related services tied to those referrals. According to the government, Medicaid actually paid about $56 million on those claims. Agents also seized cash, gold jewelry, and two properties tied to the fraud proceeds.
How The Case Unfolded From Charges To Guilty Plea
Federal officials first charged eight people in October 2024 in a broader Brooklyn Medicaid fraud probe that involved adult day care centers and a home health fiscal intermediary. The indictment described a kickback pipeline moving money for referrals and billing for services that did not happen. In August 2025, Khan pleaded guilty to conspiracy to commit health care fraud and to conspiracy to defraud the United States and pay health care kickbacks, admitting her role in the plan. The plea set the stage for this week’s prison sentence.
The government said Khan’s companies—Happy Family Adult Day Care and Family Social Adult Day Care—worked with marketers and a home care intermediary to inflate bills and hide the kickbacks. Prosecutors stated that the companies sent claims to Medicaid for large volumes of visits. They argued many of those visits were induced by payments or lacked proper support. At sentencing, the court adopted a loss figure and ordered restitution based on the paid portion of the claims, which was about $56 million.
Why This Case Speaks To Bigger System Problems
This case fits a larger pattern that federal and state officials have tracked in New York’s adult day care and home care sectors. The model rewards headcount and volume, which creates pressure to enroll more people and bill more days. That setup can tempt bad actors to use cash, gifts, or other inducements to inflate use and claims. Federal takedowns in recent years have highlighted how widespread health care fraud strains public programs and tax dollars across the country.
🚨 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 across the political spectrum, the concern is the same: public money meant to help seniors was diverted by people who knew how to game the rules. Fraud of this size hurts trust in government, raises costs, and leaves fewer resources for honest providers and vulnerable patients. The court’s sentence sends a message that these schemes bring real prison time. Still, lasting fixes will require tighter oversight, better data checks, and faster action when billing patterns look off.
Sources:
homehealthcarenews.com, justice.gov, nypost.com
