New York City’s adult day care center (referred to as the Day Care Center) is under an expanding investigation for allegedly defrauding medical assistance (Medicaid, commonly known as the “white card”). Two responsible individuals from a social adult day care center on Staten Island have been indicted, charged with falsifying service records and fraudulently claiming over $500,000 from Medicaid. This includes reporting service fees for members who are deceased, overseas, or never even attended. The two individuals face over 400 criminal charges and could potentially be sentenced to up to 15 years in prison.
Staten Island District Attorney Michael McMahon announced on October 21 that the two operators implicated are Yangsim Oum, the owner of the Staten Island Social Adult Day Care Center, and project director Juyoung Choe (presumably of Korean descent), who are mother and daughter. The district attorney’s office is also investigating other adult day care centers in the area.
According to the indictment, the two are accused of submitting false bills to Medicaid over an extended period, claiming that the center provided care services to members when some did not show up on the day, some were already deceased, or were abroad at the time.
The prosecution alleges that the two engaged in healthcare fraud and falsifying business records among more than 400 charges. If convicted, they could face a maximum of 15 years in prison. The related charges are currently pending court trial.
As this case comes to light, authorities in New York State and federal agencies are jointly investigating several adult day care centers in New York City for alleged Medicaid fraud. On the same day the two suspects were arrested, law enforcement agencies carried out raids on over a dozen day care centers in Brooklyn and Queens. The New York State Department of Health stated that investigators have conducted interviews with 20 centers under investigation, while another 80 centers have received related letters.
Governor Hochul of New York State stated that the government has a zero-tolerance approach to defrauding taxpayer funds. She emphasized that every dollar lost due to fraud was originally meant to assist New York residents genuinely in need of medical and social services. Hochul mentioned that she has been in contact with Dr. Mehmet Oz, the director of the Centers for Medicare & Medicaid Services (CMS), hoping for federal and state government cooperation to enhance efforts to combat Medicaid fraud.
The New York State government revealed that since 2013 when “social adult day care centers” were allowed to bill for services through Medicaid, the New York State Medicaid Inspector General’s Office has investigated a total of 387 suspected fraud cases involving day care centers from 2021 to 2025. Over 100 cases have been referred to the state attorney general’s office for evaluating potential criminal prosecution.
In September of this year, the owners of two day care centers in Kensington and Coney Island, Brooklyn, were sentenced to over six years in federal prison for a Medicaid fraud scheme involving around $64 million. This case involved bribery and kickbacks to recruit members and falsely billing Medicaid with fabricated service records.
Such centers are required to report fees based on actual member participation in services. Therefore, falsely reporting attendance numbers, claiming services for members who did not attend, or offering cash kickbacks to recruit members may constitute violations or fraud.
With the ongoing expansion of investigations by New York State and federal governments, attendance records, service authenticity, and the flow of Medicaid funds in day care centers have become focal points for law enforcement scrutiny.