A pair of Brooklyn-based businesses ripped off the state’s controversial Medicaid homecare program to the tune of $68 million, federal prosecutors alleged this week.
The eight accused scammers — including the owners of the two adult day care facilities — allegedly mounted the yearslong kickback and bribery scheme to defraud the state program, according to an indictment unsealed Wednesday.
The allegedly fraud-ridden Consumer Directed Personal Assistance Program (CDPAP) allows New Yorkers with minimal experience to get paid to take care of loved ones at home. Hundreds of “middleman” firms essentially work as payroll agents between the caregivers and Medicaid, with minimal oversight.
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Zakia Khan and Ahsan Ijaz, the owners of Happy Family Social Adult Day Care and Family Social Adult Day Care, also ran one such fiscal intermediary, Responsible Care Staffing, which was allegedly used to process payments for bogus services, according to the feds.