In Brooklyn’s Coney Island, Zakia Khan, the owner of two adult day care centers, pleaded guilty in the Eastern District of New York Federal Court on the 6th to committing a large-scale medical assistance fraud amounting to 68 million dollars. The fraud centered around her operation of two adult day care centers – Happy Family Adult Day Care Inc. and Family Social Adult Day Care Company, through bribery and kickback schemes to illegally obtain medical assistance funds.
Khan was accused of orchestrating a nearly seven-year fraudulent scheme, recruiting medical assistance beneficiaries through her daycare centers and affiliated entities – including a family healthcare financial intermediary and a money laundering company, Tanwee Services Inc. – from October 2017 to July 2024, by providing money or other benefits as incentives to offer or falsely report the provision of daycare services that were not actually provided.
According to court documents and prosecutors, Khan and her employed marketers induced patients through bribery to become “registered patients” of the centers, which then falsely billed medical assistance programs for services that were not actually provided or lacked substantial treatment content, thereby profiting illegally. These illicit proceeds were further laundered through multiple corporate entities and converted into cash payments for kickbacks and bribes.
After pleading guilty in court at the age of 54, Khan faces up to 15 years in prison. Under the plea agreement, she agreed to forfeit 5 million dollars in illegal proceeds, including multiple properties and over 300,000 dollars in cash and gold jewelry seized during law enforcement searches of her residence.
Co-defendants Seema Memon and Amran Hashmi (both employees of Khan) have pleaded guilty and are awaiting sentencing. Eleven other defendants will face trial at a later date.