On Tuesday, October 20th, federal and state law enforcement officers in the United States conducted a series of surprise searches at multiple Chinese senior centers in New York City, spanning from Brooklyn to Queens and Staten Island. The joint law enforcement operation across different departments and locations has sparked high attention within the New York Chinese community.
According to reports from local American media outlets, the investigation involved over a hundred service organizations that receive public funds, suspected of large-scale medical fraud, illegal kickbacks, money laundering, and improper reporting issues, including some Chinese senior centers.
The operation is part of the federal government’s efforts to combat medical fraud. Federal officials from the Centers for Medicare and Medicaid Services (CMS) conducted over 80 inspections city-wide and issued warning letters to operators. CMS Director Mehmet Oz personally visited Flushing to deliver warning letters to two institutions, Kent Senior Care and Evergreen Adult Day Care.
New York Governor Kathy Hochul stated that the state government is investigating allegations of medical fraud, targeting operators engaged in illegal activities such as money laundering, kickbacks, improper billing, and other fraudulent behaviors.
Reports indicate that federal officers with “HSI” (Homeland Security Investigations) insignias raided the Jiale Elderly Day Activity Center in Brooklyn’s Eighth Avenue, seizing at least 7 boxes labeled as “evidence.” Another adult activity center near Hamilton Parkway also had law enforcement personnel entering and removing relevant items.
The Homeland Security Investigations confirmed that their agents conducted law enforcement actions in various parts of New York City, authorized by the court.
According to an ABC7 New York report on Wednesday, October 21st, at least two individuals associated with a senior center on Staten Island were arrested. Investigators suspect these individuals of billing Medicaid for services not provided. The case is still under investigation.
Flushing is a significant area of residence for the Chinese community in New York. According to CBS News, there are 64 senior centers within a one-mile radius of Flushing, making it the most densely populated area for such centers in the United States.
Local operators mentioned that competition among senior centers is fierce, and some institutions may use cash or other incentives to attract members, raising concerns about unfair competition and supervision.
A senior Chinese man, who goes by the pseudonym Mr. Huang, shared his experience at a local senior center in Flushing. He witnessed elderly individuals regularly receiving cash and suspected his signature and service records being forged. Following his departure from the center in January, staff contacted his wife, offering him $14,450 in cash which he has not used and is willing to surrender if law enforcement requires it.
In an interview with Fox, Oz revealed that individuals associated with the “Chinese Mafia” paid some seniors between $1,000 to $1,200 to participate in medical fraud. Additionally, the Department of Justice filed charges against two men residing in Flushing in February for allegedly using cash kickbacks to recruit seniors through a pharmacy and two senior centers, and billing Medicare and Medicaid for unnecessary medical services, totaling around $120 million.
Social Adult Day Care Centers (SADC) are non-medical welfare services provided under the Medicaid Managed Long Term Care (MLTC) program authorized by the federal government. According to CBS, in 2024, approximately $3.35 billion of Medicaid funds were allocated to such services nationwide, with 17% going to 375 institutes in New York.
The state government has strengthened regulations to close loopholes such as false reporting and illegal kickbacks, ensuring Medicaid funds are used for approved services. However, senior centers are vital places for many elderly individuals to receive daily care, meals, and social support. Particularly for many Chinese elders, these centers not only provide a familiar language environment but also serve as hubs for social interactions and life support.
Governor Hochul has instructed the state health department to evaluate feasible measures, including gradually phasing out SADC welfare payments under Medicaid and arranging for current recipients to transition to other support services.