A complaint unsealed in Brooklyn charges two men from Queens with running a scheme that used kickbacks, bribes and false claims to defraud Medicare and Medicaid of about $120 million through an adult day care and pharmacy network. Authorities allege the defendants converted services intended for seniors into profit centers, submitting claims for services not provided and steering taxpayer-funded payments to their businesses.

On February 9, 2026, the U.S. Department of Justice disclosed a complaint charging two Queens men in a multi-year scheme that allegedly extracted roughly $120 million from Medicare and Medicaid. Prosecutors say the defendants operated an interconnected network of adult day care centers and pharmacies and used kickbacks, bribes, and sham arrangements to generate and submit fraudulent claims. Allegations include billing for services not provided to vulnerable seniors, fabricating medical records and prescriptions, and funneling taxpayer-funded reimbursements into affiliated businesses. The complaint, unsealed in Brooklyn federal court, details transactions and referral patterns that purportedly converted care programs into profit centers rather than providing legitimate services. The DOJ framed the case as part of sustained efforts to protect public benefit programs and the health of seniors, noting that the scheme targeted federal programs intended to deliver care to vulnerable populations. Investigators continue to work to identify assets and recover funds for the government.