
Federal Agents Raid NYC Adult Day Cares in Sweeping Medicaid Fraud Investigation
Federal authorities carried out raids at adult day care facilities across Brooklyn, Queens and Staten Island on Tuesday as part of a major investigation into suspected Medicaid fraud involving more than 100 providers throughout New York.
Agents with Homeland Security Investigations were seen removing boxes of evidence from facilities in Brooklyn’s Borough Park and Sunset Park. Officials confirmed that the operation was court-authorized but declined to provide further details while the investigation remains ongoing.
The probe is examining allegations of improper billing, kickbacks, money laundering and other potential abuses involving taxpayer-funded services for seniors and other vulnerable residents.
The FBI is reviewing Medicaid payments for social adult care services between January 2019 and October 2024. During that period, New York’s program paid approximately $2.4 billion for these services, with costs reportedly running 40% to 60% above the national average.
Gov. Kathy Hochul described Tuesday’s raids as part of a broader, months-long effort to crack down on suspected fraud and protect public funds.
“We are targeting providers we believe engaged in illegal activity ranging from money laundering to kickbacks to improper billing and other fraudulent activities,” Hochul said.
Homeland Security Investigations emphasized that billing government programs for services that were never delivered is a serious offense, stating on X: “Billing public programs for care, transportation or other services that were never provided is fraud, NOT a paperwork mistake.”
Authorities have not disclosed how many of the more than 100 providers under scrutiny have been found to have committed fraud. The investigation remains ongoing, and the allegations against individual providers have not necessarily been proven.
The raids also come amid broader scrutiny of New York’s Medicaid oversight. Hochul has said her administration has saved more than $15 billion through stronger oversight since taking office in 2021.
Separately, the Trump administration has challenged New York’s overhaul of its Consumer Directed Personal Assistance Program (CDPAP), alleging that the restructuring was rigged. Hochul’s administration has denied wrongdoing and sought to dismiss the federal lawsuit.
Tuesday’s enforcement action signals continued federal scrutiny of Medicaid spending in New York, particularly programs intended to provide care and support for vulnerable populations.
🔥 LET’S GO! DHS agents are now hauling BOXES UPON BOXES of evidence out of this Korean “adult daycare” in Queens
LOVE to see this 👏🏼
I’m so sick of foreigners coming in and RIPPING OFF American taxpayers with their fake daycares. https://t.co/ba52raPSpV
— Nick Sortor (@nicksortor) October 20, 2026