Brooklyn woman gets 76 months for $64 million Medicaid fraud scheme

A Brooklyn woman was sentenced to 76 months in prison for leading a $64 million Medicaid fraud and illegal kickback scheme involving two social adult daycare centers and a home health care company, the Justice Department said.

Zakia Khan, 55, was also ordered to pay more than $56 million in restitution and forfeit $5 million in fraud proceeds, including two properties, cash and gold jewelry seized during a search of her home.

According to court documents, Khan owned Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., along with a home health care fiscal intermediary called Responsible Care Staffing Inc. She also owned Tanwee Services Inc., an entity used to receive and disguise fraud proceeds.

From approximately October 2017 through July 2024, a network of marketers referred Medicaid recipients to Khan’s daycare centers in exchange for kickbacks and bribes, according to the Justice Department. Khan and the marketers also paid the recipients to induce them to sign up for services that Khan billed to Medicaid but that were never provided as represented.

Between 2017 and 2024, Happy Family and Family Social fraudulently billed Medicaid approximately $64 million, resulting in approximately $56 million in payments on false claims. Khan and her co-conspirators used multiple business entities to launder the proceeds and generate cash to pay kickbacks and bribes to marketers and Medicaid recipients.

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.

“The Fraud Division will relentlessly hold accountable individuals who exploit Medicaid and take advantage of services meant to support our seniors,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division.

U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York said the sentencing “sends a strong message of deterrence” and that his office and the Justice Department would “vigorously prosecute corrupt health care owners and operators” in the district.

Acting Deputy Inspector General for Investigations Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General said the sentence sends a message that anyone who illicitly exploits Medicaid will be held accountable. Acting Special Agent in Charge Pete Gizas of Homeland Security Investigations New York said Khan and her co-conspirators enriched themselves with cash, gold and property instead of providing services to vulnerable residents. NYPD Commissioner Jessica Tisch said Khan “stole $64 million from the Medicaid program through bribes and kickbacks.”

The case was investigated by HHS-OIG, HSI New York and the NYPD. Deputy Chief Patrick J. Campbell and Trial Attorney Leonid Sandlar of the National Fraud Enforcement Division’s Health Care Fraud Section prosecuted the case. Assistant U.S. Attorney Claire Kedeshian for the Eastern District of New York assisted with forfeiture matters.