U.S. DEPARTMENT OF JUSTICE A1 FINANCIAL CRIME HIGH RISK Published 2 Oct 2026 at 12:00 UTC, affecting US

DOJ: Social Adult Day Care Owner Pleads Guilty to $65M Medicaid Fraud

U.S. Department of Justice reports a Brooklyn man pleaded guilty to defrauding New York State Medicaid of approximately $65 million.

Read the original notice ↗ All US items

In short

  • U.S. Department of Justice states Ijaz is the 10th defendant to plead guilty in connection with the scheme.
  • U.S. Department of Justice notes Ijaz faces a maximum penalty of 10 years in prison.

What happened

Ahsan Ijaz, owner of multiple Brooklyn-based adult day care and home health care businesses, pleaded guilty to conspiracy to commit health care fraud after defrauding Medicaid of approximately $65 million. His businesses paid cash kickbacks and bribes to Medicaid recipients to induce enrollment and billed Medicaid for services not provided, including when recipients were not in the United States.

Ijaz is the 10th defendant to plead guilty in this scheme. He is scheduled to be sentenced on March 10, 2027, and faces a maximum penalty of 10 years in prison. The case was investigated by HHS-OIG, HSI New York, and NYPD, and prosecuted by the Justice Department’s National Fraud Enforcement Division.

FROM THE NOTICE
Over approximately seven years, Ijaz’s businesses paid cash kickbacks and bribes to Medicaid recipients to induce them to enroll with the businesses and billed Medicaid for services that were not provided, including when certain Medicaid recipients were not in the United States at the time of service.
U.S. Department of Justice, justice.gov

In numbers

  • $65 million Amount defrauded from New York State Medicaid
  • 10 Defendants who pleaded guilty in connection with the scheme
  • 10 years Maximum penalty faced by Ijaz

Named in this item

2 entities
STATUS NAME ISO PROGRAM IDENTIFIER
Social Adult Day Care Owner
Organization, accused
Screen this name
US — —
New York State Medicaid
Organization, victim
US — —

What compliance teams should check

  • Review claims submitted by Happy Family Social Adult Day Care Center, Inc. and Family Social Adult Day Care Center Inc. for potential fraud indicators.
  • Audit Responsible Care Staffing Inc. for improper billing and kickback practices involving Medicaid recipients.
  • Cross-check Medicaid recipient travel records to identify claims for services when recipients were not in the United States.

Why it matters

This case highlights the risks of fraudulent billing and kickback schemes in social adult day care and home health care services. Compliance officers must be vigilant in detecting patterns such as billing for services not rendered and inducements to recipients. The involvement of multiple defendants and a large sum—$65 million—demonstrates the scale and complexity of such schemes, emphasizing the need for robust controls and cross-agency cooperation to protect federal benefit programs from abuse.

FOR COMPLIANCE TEAMS

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