An indictment was unsealed today in Brooklyn, New York, charging eight defendants for their alleged roles in a scheme to defraud Medicaid of approximately $68 million through the operation of two social adult day cares and a home health care financial intermediary that were paying kickbacks and bribes for services that were not provided.
According to court documents, Zakia Khan, 53, of Brooklyn, and Ahsan Ijaz, 27, of Brooklyn, owned two social adult day cares, Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc. (Family Social), and a financial intermediary, Responsible Care Staffing Inc. (Responsible Care), for the New York Medicaid Consumer Directed Personal Assistance Services Program (CDPAP), which permits family members of Medicaid recipients to receive payment for assisting Medicaid recipients with activities of daily living. Beginning in approximately October 2017, in exchange for kickbacks and bribes, marketers Elaine Antao, 45, also known as Aleena, of Brooklyn, Omneah Hamdi, 61, of Brooklyn, and Manal Wasef, 44, of Brooklyn, allegedly referred Medicaid recipients to Happy Family, Family Social, and/or Responsible Care. The marketers in turn allegedly paid kickbacks and bribes to Medicaid recipients for social adult day care and CDPAP services that Happy Family, Family Social, and Responsible Care billed to Medicaid but were not provided or were induced by kickbacks and bribes. Ansir Abassi, 38, also known as Zaib Abassi and Ansir Zaib, of Brooklyn, and Amran Hashmi, 53, of Brooklyn, allegedly managed Happy Family and Family Social and the marketers. To carry out the kickback scheme, Khan, Antao, Ijaz, Abassi, and Hamdi allegedly used business entities to launder the fraud proceeds and generate the cash used to pay kickbacks and bribes. Seema Memon, 30, of Brooklyn, an employee of Happy Family who was previously charged by complaint on July 1, was also indicted.
“As alleged in the indictment, these defendants orchestrated a years-long scheme to defraud Medicaid of tens of millions of dollars for social adult day care and home care services for seniors that they did not provide,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants allegedly paid cash bribes and kickbacks to recruiters and Medicaid recipients as part of a scheme to enrich themselves at the expense of vital programs for senior citizens. Today’s charges make clear that the Criminal Division will not tolerate schemes that brazenly steal from federal health care programs.”
“Social adult day care and home health services are meant to help seniors, but as alleged, the defendants allegedly turned their businesses into a brazen cash grab of millions of dollars from the Medicaid program,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office is committed to investigating and prosecuting those who plunder taxpayer-funded, federal health care programs dollars while purporting to offer health care services.”
“HHS-OIG is committed to working with our law enforcement partners to investigate allegations that bribes and kickbacks are paid with Medicaid monies,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
“The crimes outlined in this indictment took advantage of a network that offers essential health care and other services to those in need,” said Interim Commissioner Thomas G. Donlon of the New York City Police Department (NYPD). “Let it be clear: anyone who attempts to profit by defrauding the system will face consequences, as these schemes drain already limited resources and deprive beneficiaries of crucial funds. I commend our NYPD investigators and federal law enforcement partners for their successful and continued collaboration.”
“As alleged, the defendants saw nothing beyond the dollar signs associated with their crimes, and in turn defrauded the U.S. government of $68 million in welfare funds meant for one of our country’s most vulnerable populations,” said Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York. “Today’s announcement underscores the HSI New York El Dorado Task Force’s unrelenting focus on dismantling and disrupting financial fraud schemes that exploit the American public and hurt our economy.”
Khan is charged with conspiracy to commit health care fraud, three counts of health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, paying health care kickbacks, conspiracy to commit money laundering, and money laundering. If convicted, she faces a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and paying health care kickbacks, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Abassi, Antao, Hamdi, and Ijaz are charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, conspiracy to commit money laundering, and money laundering. If convicted, they face a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for conspiracy to commit health care fraud, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Hashmi is charged with conspiracy to commit health care fraud, three counts of health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and paying health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and paying health care kickbacks, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Memon is charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and paying health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud and paying health care kickbacks and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Wasef is charged with conspiracy to commit health care fraud and conspiracy to defraud the United States and to pay and receive health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
HHS-OIG, NYPD, and HSI are investigating the case.
Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Tanisha R. Payne for the Eastern District of New York is assisting with forfeiture matters.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.