Brooklyn Woman Pleads Guilty to Conspiring to Defraud Medicaid of $68 Million

Strategic Insights -

Zakia Khan, the owner of two social adult day care centers in Coney Island, Brooklyn, pleaded guilty in federal court to conspiring to defraud Medicaid of approximately $68 million. Khan, 54, of Brooklyn, admitted to paying kickbacks and bribes to Medicaid recipients for social adult day care services that were not provided or were induced by these payments. As part of her plea agreement, Khan agreed to forfeit $5 million, including several properties, and more than $300,000 in cash and gold jewelry seized by law enforcement.

Key Takeaways:

  • Zakia Khan, owner of Happy Family Adult Day Care Inc. and Family Social Adult Day Care Inc., pleaded guilty to conspiring to defraud Medicaid of approximately $68 million through kickbacks and bribes.
  • Khan's scheme involved paying marketers to refer Medicaid recipients to her centers, where they would receive kickbacks and bribes for services not provided or induced by these payments.
  • Khan used multiple business entities to launder the health care fraud proceeds and generate cash used to pay kickbacks and bribes.
  • Co-defendants Seema Memon and Amran Hashmi, who were employees of Khan, previously pleaded guilty and are awaiting sentencing.
  • Eleven additional co-defendants are awaiting trial.
  • Khan faces up to 15 years in prison when sentenced.

Statistics:

  • $68 million: estimated amount of Medicaid funds defrauded through Khan's scheme
  • $5 million: amount forfeited by Khan as part of her plea agreement
  • $300,000: amount of cash and gold jewelry forfeited by Khan
  • 54: Khan's age at the time of her guilty plea
  • 30: age of Seema Memon at the time of her guilty plea
  • 54: age of Amran Hashmi at the time of his guilty plea
  • 4 years and 8 months: approximate duration of Khan's scheme (October 2017 to July 2024)
  • 2: number of social adult day care centers owned by Khan
  • 11: number of additional co-defendants awaiting trial

Sources:

  • United States Attorney's Office for the Eastern District of New York
  • Justice Department's Criminal Division
  • HHS-OIG
  • HSI New York
  • NYPD