NEW YORK: More than 100 Social Adult Day Care providers are under investigation over allegations of Medicaid fraud. Computers and documents were seized during raids conducted by federal and state authorities on October 20 in Queens, Brooklyn and Staten Island. In Flushing, authorities searched Hanmaum Daycare and reportedly removed six boxes, two computers and a large plastic container. A notice of temporary suspension was also seen at the facility. The center serves Korean-American and Asian-American seniors.
Authorities also conducted searches in Brooklyn’s Sunset Park, along Eighth Avenue, and in Borough Park, along Fort Hamilton Parkway. Several locations in Staten Island were also searched. The agencies involved in the investigation include the New York State Department of Health, the Office of the Medicaid Inspector General (OMIG), the New York Attorney General’s Medicaid Fraud Control Unit, the FBI and Homeland Security Investigations (HSI).
Governor Kathy Hochul said the investigation targets suspected money laundering, kickbacks, improper billing and fraud. According to FBI data, approximately $2.4 billion was spent on Social Adult Day Care services through Medicaid between January 2019 and October 2024. New York has more than 400 Social Adult Day Care programs serving approximately 45,000 Medicaid members.
In a separate case in Staten Island, Yangsim Oum, owner of SI Day Care Center, and Juyoung Choe, the program director, were arrested over allegations of billing for services that were not provided. The alleged fraud amount exceeds $530,000. The defendants are presumed innocent unless proven guilty.
According to available information, several Bangladeshi-owned day care centers were also searched. However, further details have not been confirmed. Social Adult Day Care services are different from home care services. New York State is reviewing oversight of these programs, with recommendations expected by December 31, 2026.
