FBI agents search adult day care centers in New York amid Medicaid fraud investigation

NEW YORK (WABC)– Federal agents are searching several companies suspected of being involved in Medicaid fraud.

At one location in Borough Park, Brooklyn, on Tuesday, investigators appeared to be at the Happy Adult Day Care Center on Fort Hamilton Parkway.

Authorities believe the senior centers overcharged for their services, grossly inflated the number of clients served and engaged in kickbacks.

Officials described the effort as a joint operation between the federal and state governments.

The FBI released the following statement:

“The New York FBI, along with several other law enforcement agencies, is conducting law enforcement activities in the Queens area, Staten Island, Brooklyn and other locations around New York City as part of ongoing federal investigations.”

While President Donald Trump and Gov. Kathy Hochul have clashed over other issues, both administrations are helping investigate what authorities have described as multibillion-dollar scams against taxpayers.

“Every dollar lost to fraud is a dollar that should be used to help New Yorkers get the care and services they desperately need,” Hochul said.

Trump announced a new incentive to encourage fraud reporting, saying whistleblowers would receive 1% of the amount stolen.

“If someone gives someone back… 1% commission and I think that will be incredible. The kind of money that’s been stolen is in the trillions in this country,” Trump said.

Among those eligible for the award is YouTube journalist Nick Shirley, who was in the Oval Office and helped spark investigations in Minnesota and New York.

“When you expose fraud, you help save America,” Shirley said.

Vice President JD Vance also promoted the initiative.

“If you want to help us stop, you will share in the rewards of what the president has done,” Vance said.

While Tuesday’s operations were largely focused on collecting evidence at facilities such as a senior center in Flushing, authorities said there were two arrests on Staten Island.

The district attorney is expected to announce additional details Wednesday, including an indictment involving what authorities describe as a multimillion-dollar fraud.

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