Brooklyn Medicaid Fraud Case Exposes How $68 Million Meant for the Vulnerable Was Looted

By Michael Phillips | NYBayNews

Federal prosecutors announced this week that two Brooklyn marketers have pleaded guilty in a sweeping Medicaid fraud case that siphoned more than $68 million from programs designed to support seniors and people with disabilities—underscoring persistent vulnerabilities in New York’s publicly funded health care systems.

According to the U.S. Department of Justice, Manal Wasef, 46, and Elaine Antao, 46, both of Brooklyn, admitted to conspiring to commit health care fraud as part of a long-running kickback scheme tied to social adult day care and home health services in the borough.

How the Scheme Worked

From roughly October 2017 through July 2024, Wasef and Antao acted as recruiters for a network of providers that included:

• Happy Family Social Adult Day Care Center Inc.
• Family Social Adult Day Care Center Inc.
• Responsible Care Staffing Inc., a fiscal intermediary connected to New York’s Consumer Directed Personal Assistance Program (CDPAP)

Prosecutors say the recruiters were paid illegal kickbacks by the providers for steering Medicaid recipients into the programs. They, in turn, paid cash bribes directly to beneficiaries to enroll or appear to “attend” services that often never occurred. The providers then billed Medicaid for those phantom services.

To keep the scheme running, the conspirators allegedly used multiple shell entities to launder proceeds and generate cash—turning taxpayer-funded care into a personal revenue stream.

Guilty Pleas and Penalties

Both Wasef and Antao pleaded guilty to one count of conspiracy to commit health care fraud. Each faces up to 10 years in federal prison, with sentencing scheduled for:

• Elaine Antao — May 20, 2026
• Manal Wasef — May 27, 2026

They also agreed to forfeit approximately $1 million combined.

The pair are the sixth and seventh defendants to plead guilty in the expanding case.

The Alleged Ringleaders

The broader prosecution centers on Zakia Khan, the owner of the two adult day care centers and Responsible Care Staffing. Khan pleaded guilty in August 2025 to leading the scheme and is scheduled to be sentenced later this month. Prosecutors say she orchestrated the operation by hiring marketers, approving kickbacks, and overseeing fraudulent billing that drained Medicaid for years.

Another key defendant, Ahsan Ijaz, a co-owner of the day care centers, remains charged but has not yet entered a public plea as of mid-January.

A System Ripe for Abuse

The case highlights long-standing concerns from watchdogs and fiscal conservatives that Medicaid’s scale and complexity make it a prime target for fraud, particularly in loosely supervised sectors like adult day care and home health services. While these programs serve real needs, weak oversight and political resistance to tighter controls can invite exploitation.

Federal agencies involved in the investigation—including the HHS Office of Inspector General, Homeland Security Investigations, and the New York Police Department—say the damage goes beyond dollars.

“These defendants placed profit over people,” one federal official said, noting that the fraud undermined trust in safety-net programs and diverted resources from vulnerable New Yorkers who genuinely rely on Medicaid.

Why It Matters

At a time when New York faces mounting budget pressures and calls for expanded social spending, the case serves as a reminder that every stolen dollar is one less available for legitimate care—and one more burden on taxpayers.

As prosecutions continue, the scandal raises uncomfortable questions for Albany and City Hall alike: whether regulators are serious about enforcement, and whether political leaders are willing to confront fraud aggressively, even when it means scrutinizing favored programs and providers.

For now, federal authorities say the message is clear—Medicaid is not a blank check, and abuse of the system will be met with prison time.

For the full DOJ announcement, see the Department of Justice press release issued January 15, 2026.