A shocking Medicaid fraud scheme has been uncovered, revealing how millions of taxpayer dollars were siphoned away from vital services meant for the vulnerable.
Story Highlights
- Two Brooklyn residents pleaded guilty to a $68 million Medicaid fraud.
- The scheme involved kickbacks and bribes at social adult day care centers.
- Fraud targeted New York’s Managed Long-Term Care plans.
- Defendants agreed to forfeit $1 million as part of their plea deal.
- Seven individuals have pleaded guilty in the ongoing investigation.
Brooklyn Medicaid Fraud Unveiled
In a case that has shocked many, Manal Wasef and Elaine Antao, both residents of Brooklyn, have pleaded guilty to orchestrating a massive Medicaid fraud scheme. From October 2017 to July 2024, these individuals, along with others, exploited New York’s Managed Long-Term Care (MLTC) plans. Their actions involved paying kickbacks to Medicaid recipients for services that were never provided and laundering the proceeds through various business entities.
Two Brooklyn residents pleaded guilty to a conspiracy that stole $68 million from Medicaid.
The scheme involved bribes, fake services, and money laundering — with more arrests expected as the case unfolds. pic.twitter.com/siHMxfrEHr
— NLDR (Noldor) Media (@NLDRMedia) January 16, 2026
These fraudulent activities centered around two social adult day care centers, Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., as well as a home health care fiscal intermediary, Responsible Care Staffing Inc. The defendants used these entities to bill for services that were never rendered, effectively stealing from taxpayers and depriving legitimate beneficiaries of much-needed care.
Implications of the Fraud
The guilty pleas of Wasef and Antao mark the sixth and seventh admissions in this significant case. The ripple effects of this scheme are profound, with Medicaid recipients being underserved and taxpayers losing $68 million. This case underscores the vulnerabilities in the system and the need for stricter oversight and auditing of MLTC plans to prevent similar frauds in the future.
In the short term, the $1 million forfeited by the defendants is just a fraction of the total amount defrauded, but it sends a clear message about the consequences of such actions. Long-term repercussions include increased scrutiny on adult day care operations and potential policy reforms to safeguard taxpayer money.
Prosecutors’ Commitment to Justice
The U.S. Department of Justice and the Eastern District of New York’s U.S. Attorney’s Office have been at the forefront of this case, emphasizing their commitment to rooting out fraud and protecting taxpayer dollars. The Assistant Attorney General’s statement highlights the importance of bringing those who exploit the system to justice, ensuring that Medicaid funds are used appropriately to assist those truly in need.
The ongoing investigation may lead to further charges and indictments, as authorities continue to unravel the full extent of this fraudulent network. With the sentencing of Wasef and Antao pending, the legal system aims to deter future schemes and restore trust in public healthcare programs.
Sources:
Two Individuals Plead Guilty to $68 Million Adult Day Care Fraud Scheme
Two Individuals Plead Guilty to $68 Million Fraud Scheme at Brooklyn-Based Adult Day Cares
Two Plead Guilty in $68M Brooklyn Medicaid Fraud Scheme
Two Brooklyn Residents Plead Guilty to Medicaid Fraud Scheme
