Homeland Security Investigations (HSI), the New York State Office of the Medicaid Inspector General (OMIG), the IRS and the NYPD raided several social adult day care (SADC) centers in Brooklyn, Queens and Staten Island on Oct. 20. The raids included a facility in Flushing serving Korean and other Asian American seniors. Police said the operation is unrelated to immigration enforcement.
Federal, state and city investigators simultaneously raided several social adult day care (SADC) centers across New York City on Oct. 20. The joint operation is part of an investigation into suspected Medicaid fraud.
According to the local outlet amNewYork, HSI, OMIG, the IRS and the NYPD raided facilities in Brooklyn, Queens and Staten Island at the same time. The outlet reported that at about 1:30 p.m. that day, it saw federal agents carrying out six boxes, two computers and one large plastic bin from Hanmaum Day Care at 32-38 148th St. in Flushing, Queens. The facility has promoted itself as primarily serving Korean and other Asian American seniors.
Hochul: "An Investigation Conducted With Federal Partners for Months"
Gov. Kathy Hochul addressed the raids the same day at a press conference for another event. "This morning, the New York State Department of Health and the Office of the Medicaid Inspector General, together with state and federal investigators, cracked down on suspected fraud in social adult day care programs," Hochul said. "Because this is an ongoing investigation, there is a limit to what I can disclose."
She went on to describe it as "an investigation that has been conducted in close cooperation with the federal government for months," saying it targets businesses suspected of illegal activity such as money laundering, kickbacks and improper billing. Hochul added that the state has saved more than $15 billion in Medicaid since 2021 and has referred more than 100 cases to the state attorney general's office for investigation.
Not Related to Immigration Enforcement
NYPD officials confirmed that the department took part in the investigation but said it has nothing to do with immigration enforcement. With U.S. Immigration and Customs Enforcement (ICE) activity increasing across the New York area in recent weeks and anxiety growing among Korean American seniors, this distinction is important to make clear.
The HSI New York office said on X: "Health care fraud is not a victimless crime. It drains public funds, undermines trust in programs that are badly needed, and takes needed support away from communities, families and caregivers."
No arrests or charges have been announced so far. A search warrant is a step in an investigation, and it does not by itself establish that the facilities in question committed any wrongdoing.
What Happens to Attendees?
Social adult day care (SADC) centers are facilities where seniors enrolled in Medicaid managed long-term care (MLTC) plans receive meals, exercise and social activity programs during the day. In the New York Korean community, many centers offer Korean-language service and Korean meals, and a considerable number of seniors attend them.
The New York State Office of the Medicaid Inspector General takes reports of suspected fraud at 1-877-873-7283. NY&NJ plans to continue following the investigation's progress and its impact on Korean American attendees.