Brooklyn Medicaid Fraud Scheme Uncovered: $68 Million in False Claims and Kickbacks

Two Women Admit Guilt in Massive Medicaid Home Care Scam

Two Brooklyn-based women, Manal Wasef and Elaine Antao, both aged 46, have formally admitted to orchestrating a large-scale fraud scheme that siphoned off $68 million from New York’s Medicaid home care program. The pair conspired to pay illegal kickbacks to Medicaid beneficiaries in exchange for referring them to adult day care centers and home health services that were never actually rendered.

Details of the Fraudulent Operation

According to court filings, from October 2017 through July 2024, Wasef and Antao acted as recruiters and marketers for two Brooklyn social adult day care centers-Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc.-as well as Responsible Care Staffing Inc., a home health care fiscal intermediary. They compensated Medicaid recipients with illicit payments to secure their participation in these programs, which were then billed to Medicaid despite no services being provided.

Money Laundering and Use of Multiple Business Entities

To conceal the origins of the illicit funds and facilitate the payment of kickbacks, the duo employed several business fronts. These entities were used to launder the proceeds of the fraud, effectively generating cash to sustain their bribery operations.

Legal Consequences and Restitution

Alongside their guilty pleas to conspiracy to commit health care fraud, Wasef and Antao have agreed to forfeit approximately $1 million. Both face up to 10 years in federal prison, with sentencing scheduled for May 20 and May 27, respectively.

Broader Context: The Fight Against Medicaid Fraud

Assistant Attorney General A. Tysen Duva emphasized the scale of the scheme, stating, “These defendants were major recruiters who bribed patients with laundered cash and billed Medicaid over $68 million for services that were never delivered.” This case highlights the Department of Justice’s ongoing commitment to aggressively pursue those who exploit taxpayer-funded health programs.

Additional Defendants and the Network of Fraud

Wasef and Antao are among eight individuals initially charged in connection with this extensive kickback and bribery conspiracy. Other accused parties include business owners Zakia Khan and Ahsan Ijaz, as well as Oasmneah Hamdi, Ansir Abassi, and Amran Hashmi. To date, Wasef and Antao are the sixth and seventh defendants to enter guilty pleas.

Systemic Vulnerabilities in Medicaid Home Care Programs

Experts note that hundreds of intermediary companies act as payroll agents between caregivers and Medicaid, often operating with minimal regulatory oversight. This lack of stringent supervision creates opportunities for fraudulent activities like those uncovered in this case.

Impact on Vulnerable Populations and Public Resources

Ricky J. Patel, Special Agent in Charge of Homeland Security Investigations in New York, condemned the defendants’ actions: “They prioritized profit over the welfare of vulnerable individuals, stealing $68 million intended for those most in need.” Patel praised law enforcement efforts to dismantle such schemes that undermine public trust and drain government resources.

Looking Ahead: Sentencing and Deterrence

The sentencing of Wasef and Antao is expected to serve as a deterrent to others contemplating similar fraudulent schemes. Federal authorities continue to prioritize investigations into Medicaid fraud, which the Centers for Medicare & Medicaid Services estimate costs the U.S. billions annually, with home care fraud representing a significant portion.