Brooklyn Day Care Owner Gets 76-Month Sentence in $68M Medicaid Fraud

NEW YORK — A Brooklyn day care owner has been sentenced to 76 months in federal prison for her leadership role in a massive Medicaid fraud and illegal kickback scheme involving two social adult day care centers and a home health care company, according to the U.S. Department of Justice. Zakia Khan was sentenced on September 9, 2026, by U.S. District Judge Natasha C. Merle in federal court in Brooklyn. In addition to the prison sentence, Khan was ordered to pay more than $56 million in restitution and forfeit $5 million in proceeds connected to the fraud.

According to court documents, Khan owned and operated Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc. in Coney Island. She also controlled Responsible Care Staffing Inc. and Tanwee Services Inc.

The fraudulent scheme operated from approximately October 2017 through July 2024. Prosecutors said Khan and her associates recruited Medicaid beneficiaries through marketers and paid illegal kickbacks to induce them to participate in the adult day care program.

The scheme involved submitting Medicaid claims for services that were not actually provided. The two adult day care centers submitted approximately $64 million in fraudulent claims, of which Medicaid paid approximately $56 million.

The broader criminal operation was described by federal prosecutors as a $68 million Medicaid fraud scheme. Khan and her associates also used various businesses to move and distribute proceeds from the scheme. Some of the money was allegedly used to provide cash kickbacks to Medicaid beneficiaries and marketers.

Khan pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay and receive health care kickbacks. At the time, she also agreed to forfeit $5 million in proceeds from the scheme.

During a search of Khan’s residence, investigators seized cash, gold jewelry and assets connected to two properties. Those assets are included in the forfeiture ordered by the court. The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General, Homeland Security Investigations and the New York City Police Department.

Several other defendants have also faced charges in connection with the scheme. Federal authorities initially charged eight people in connection with the alleged $68 million operation. The Justice Department has not publicly identified Khan’s nationality or country of origin in its official case documents. Therefore, she should not be described in the news as Bangladeshi, Pakistani or Indian unless a reliable source specifically confirms her background.

Source: U.S. Department of Justice, Eastern District of New York.