BROOKLYN, N.Y. (Diya TV) — A Brooklyn woman was sentenced Wednesday to 76 months in federal prison for her role in a Medicaid fraud and illegal kickback scheme involving two adult day care centers and a home health care company.
U.S. District Judge Natasha C. Merle also ordered Zakia Khan, 55, to pay more than $56 million in restitution and forfeit $5 million in fraud proceeds. The forfeiture includes two properties, cash and gold jewelry seized from her home.
Khan owned Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc. in Coney Island, as well as Responsible Care Staffing Inc., a home health care fiscal intermediary. Prosecutors said she also used Tanwee Services Inc. to receive and conceal proceeds from the scheme.
According to court documents, marketers referred Medicaid recipients to Khan’s businesses between October 2017 and July 2024 in exchange for kickbacks and bribes. Khan and others also paid Medicaid recipients to enroll in services that were later billed to the program but were not provided as represented or were obtained through illegal payments.
Happy Family and Family Social submitted approximately $64 million in fraudulent Medicaid claims during that period. Medicaid paid about $56 million on those claims, prosecutors said.
Prosecutors said Khan and her co-conspirators used multiple business entities to move fraud proceeds and generate cash used to pay kickbacks to marketers and Medicaid recipients.
Khan pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks.
Homeland Security Investigations, the Department of Health and Human Services Office of Inspector General and the New York City Police Department investigated the case.
