The Department of Justice announced on February 9 a indictment accusing two men living in Queens of defrauding approximately $120 million from the Medicare and Medicaid programs over nearly a decade through illegal kickbacks, bribery, and false claims, involving adult day care centers and pharmacies.
According to the indictment, 42-year-old Inwoo Kim, also known as Tony Kim or Long Jin, who resides in Flushing, owns a pharmacy and two adult day care centers: Z & W Empire Enterprise Inc. (operating as Royal Adult Daycare) and Happy Life Inc. Meanwhile, 56-year-old Daniel Lee, also residing in Flushing, serves as the project manager of Happy Life.
The indictment alleges that between 2016 and 2026, both individuals gave cash, supermarket gift vouchers, and other illegal kickbacks to beneficiaries of Medicaid and Medicare to encourage them to obtain medications from Kim’s pharmacy or join his adult day care centers. Kim and his co-conspirators discussed kickback payments through text messages, including requests to pay “$10,000 to Korean members” in advance.
Prosecutors stated that Medicare and Medicaid paid approximately $120 million for these prescription drugs and adult day care services, which were either medically unnecessary, not provided at all, or influenced by illegal kickbacks and bribery. Law enforcement authorities have executed multiple search warrants and frozen several bank accounts related to the case.
Both defendants have been charged with conspiracy to commit healthcare fraud, which carries a maximum sentence of 10 years in prison if convicted.