Feds raid NYC adult day cares in sweeping probe into Medicaid fraud involving money-laundering, kickbacks

The feds raided at least two Brooklyn adult day cares Tuesday alleging Medicaid fraud involving everything from money laundering to kickbacks, officials said.The crackdown is part of a monthslong “massive effort to combat fraud and abuse” involving some of the state’s most vulnerable people, Gov.Kathy Hochul said.“We are targeting providers we believe who engaged in illegal activity ranging from money laundering to kickbacks to improper billing and other fraudulent activities,” Hochul said at an unrelated press conference.Officers from law-enforcement agencies including Homeland Security Investigations were seen by The Post outside two of the suspected fraudulent adult day cares in Brooklyn.Photos captured the agents carrying evidence boxes from the locations — one in Sunset Park and the other in Borough Park.“Billing public programs for care, transportation or other services that were never provided is fraud, NOT a paperwork mistake,’’ HSI wrote on X.An HSI spokeswoman confirmed in a statement to The Post that the agency was executing a “court-authorized law enforcement action,” though declined to comment further, citing an active investigation.Hochul said the enforcement was the latest action by her administration to strengthen oversight of adult day care programs since she took office in 2021, saying over $15 billion dollars in Medicaid money had been saved as a result.Her administration has said it is committed to reining in New York’s roughly $116 billion Medicaid program by attacking fraud within the system, which is meant to provide healthcare benefits to low-income residents.

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But one of her signature efforts, an overhaul of the state’s consumer-directed home care program, or CDPAP, was rigged...