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Kickbacks Turned Real Enrollees Into Cover
Happy Family and Family Social fraudulently billed Medicaid roughly $64 million over that period, and the program paid out about $56 million on the false claims before investigators caught up with the scheme, according to the Justice Department’s sentencing announcement. Khan and her co-conspirators used multiple business entities to launder the proceeds and generate the cash used to keep paying marketers and Medicaid recipients, prosecutors said.
The Forfeiture Reached Into Khan’s Home
Beyond the prison term, the court ordered Khan to forfeit $5 million in fraud proceeds, a sum that included two properties along with cash and gold jewelry federal agents recovered when they executed a search warrant at her home. Khan pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks, admitting her role more than a year before sentencing. The $56 million restitution order is separate from the forfeiture; it represents the amount Medicaid actually paid on the false claims, not the larger sum billed.
NYPD Commissioner Jessica Tisch, whose department’s investigators worked the case alongside the Department of Health and Human Services Office of Inspector General and Homeland Security Investigations, said Khan “stole $64 million from the Medicaid program through bribes and kickbacks — money meant to support the most vulnerable.” Acting Deputy Inspector General for Investigations Miranda L. Bennett of HHS-OIG said social adult day care and home health services “are designed to support seniors, not line the pockets of fraudsters.”
Court filings describe undercover recordings of Khan paying illegal kickbacks inside her office at Happy Family, along with Medicaid recipients receiving cash in exchange for filling out attendance sheets that falsely showed they had received care. Investigators used those recordings, together with financial records tracing the proceeds through Tanwee Services and Khan’s other entities, to build the forfeiture case that ultimately reached the cash and jewelry inside her home.
A Fraud Division Built to Chase Cases Like This
The prosecution ran through the Justice Department’s National Fraud Enforcement Division, created April 7 under President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance that targets fraud, waste and abuse in federal benefit programs. Assistant Attorney General Colin M. McDonald said the sentence “should put all Medicaid fraudsters on notice,” while U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York said his office would continue to “vigorously prosecute corrupt health care owners and operators” in the district…