Zakia Khan, Leader of $68 Million Adult Day Care Fraud Scheme Pleads Guilty

According to court documents, Zakia Khan, 54, of Brooklyn, owned two social adult day cares: Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., Responsible Care Staffing Inc., a home health care fiscal intermediary, and Tanwee Services Inc., an entity used to receive and disguise fraud proceeds.

Beginning in approximately October 2017 and continuing through approximately July 2024, in exchange for kickbacks and bribes, Khan and marketers whom she employed referred Medicaid recipients to the social adult day cares that she owned, and Khan and the marketers in turn paid kickbacks and bribes to Medicaid recipients for social adult day care services that the day cares billed to Medicaid, but were not provided or that were induced by kickbacks and bribes.

Khan and her co-defendants used multiple business entities to launder the fraudulent proceeds and generate the cash used to pay kickbacks and bribes. In connection with her plea, Khan agreed to forfeit $5 million, including two properties, cash, and gold jewelry seized during a search of her home.
Khan pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States and to pay and receive health care kickbacks. She is scheduled to be sentenced on Jan. 28, 2026, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Earlier on Oct 16,2024 Eight persons, including Zakia were charged in $68 Million Social Adult Day Care, Home Health Care Scheme Following HSI New York Task Force Investigation. Others charged in the scheme were Ahsan Ijaz, Elaine Antao, Omneah Hamdi, Manal Wasef, Ansir Abassi & Amran Hashmi.