Medicaid Fraud Scheme Uncovered – You Won’t Believe How They Did It

Two Brooklyn women just admitted stealing $68 million from Medicaid taxpayers through fake day care services, exposing how easy it is to loot government programs for seven straight years.

Story Snapshot

Elaine Antao and Manal Wasef, both 46, pleaded guilty January 15, 2026, after running a kickback scheme billing Medicaid for nonexistent services.
Scheme ran from October 2017 to July 2024, involving fake patients recruited with cash bribes at fraudulent day cares and staffing firms.
$68 million stolen, with federal taxpayers funding 60% of New York’s ballooning $116 billion Medicaid budget.
Seven guilty pleas total; federal seizures include cash, jewelry, real estate—ongoing probe signals deeper rot.
Exposes SADC program explosion from 40 to 400 centers with zero oversight, fueling national fraud epidemic.

Scheme Mechanics and Timeline

Elaine Antao and Manal Wasef recruited fake patients for Happy Family Social Adult Day Care Center Inc., Family Social Adult Day Care Center Inc., and Responsible Care Staffing Inc. They paid cash kickbacks and bribes to lure able-bodied people posing as needy elderly or disabled. These entities billed Medicaid for services never delivered, laundering proceeds through layered businesses. The operation started October 2017 and evaded detection until July 2024.

Ringleaders and Guilty Parties

Zakia Khan and Ahsan Ijaz owned the fraudulent businesses, directing the core operation. Antao and Wasef handled marketing and recruitment, bribing recruits to fake attendance. Five others pleaded guilty earlier, making Antao and Wasef the sixth and seventh. All targeted New York’s social adult day care and CDPAP programs, exploiting loose rules for home health fiscal intermediation. U.S. Attorney’s Office in Brooklyn led the federal takedown.

Systemic Failures Enabling Fraud

New York SADC centers surged from 40 in 2013 to nearly 400, popping up in storefronts and basements without inspections. State officials skipped facility checks, patient interviews, or owner scrutiny despite $10 million annual payouts to these fraud mills. Governor Hochul called CDPAP a racket amid TikTok ads paying $37/hour for fake family caregiving. Medicaid spending doubled to $116 billion since 2013, with federal share at 60%—prime conditions for theft.

Federal prosecutors note no genius required: submit fake paperwork, collect checks. This seven-year run underscores state oversight collapse, diverting funds from real patients.

Taxpayer Impact and National Context

The $68 million hit strikes federal and state taxpayers directly, part of $37 billion annual Medicaid losses nationwide at 6% of benefits. New York’s spend dwarfs Florida’s 2.5 times despite smaller population, screaming inefficiency. Legitimate elderly and disabled face tighter scrutiny; real providers lose trust. Senate Republicans demand Hochul audit all programs—common sense accountability long overdue.

Seizures, Prosecutions, and Reform Pressure

Antao and Wasef forfeit $1 million combined; feds grabbed bank accounts, jewelry, luxury goods worth millions more. Case spotlights SADC/CDPAP holes, mirroring Minnesota’s $9 billion probe since 2018. High-profile busts may deter copycats, but easy execution demands federal overhaul. State laxity betrays conservative principles of fiscal responsibility and program integrity for vulnerable Americans.