Brooklyn Duo’s $68M Medicaid Scam Exposed

Two Brooklyn residents just admitted to stealing $68 million from Medicaid over seven years—and nobody noticed until 2024.

Story Snapshot

Elaine Antao and Manal Wasef pleaded guilty to orchestrating a $68 million Medicaid fraud scheme involving fake patients and services never provided
The scheme operated undetected for seven years from October 2017 to July 2024 through phony social adult day care centers
Federal agents seized millions in luxury assets including real estate and jewelry as seven defendants have now pleaded guilty
New York’s Medicaid spending exploded from $55 billion in 2013 to $116 billion in 2025 with minimal oversight as social adult day care facilities mushroomed from 40 to 400

The Paper Scheme That Printed Money for Seven Years

Federal prosecutors revealed that no sophisticated operation was required to bilk taxpayers out of $68 million. Elaine Antao and Manal Wasef, both 46-year-old Brooklyn residents, simply recruited fake patients with cash bribes, submitted fraudulent paperwork for services never rendered, and collected government checks. The defendants operated as marketers for Happy Family Social Adult Day Care Center and Family Social Adult Day Care Center, along with Responsible Care Staffing, a home health fiscal intermediary. They laundered proceeds through multiple business entities to generate cash for continued kickback operations. The simplicity itself indicts the system.

When Government Programs Grow Faster Than Oversight Can Follow

New York’s social adult day care program exploded from 40 facilities in 2013 to nearly 400 by the time investigators shut down this scheme. The rapid expansion occurred across New York City’s five boroughs, with centers appearing in storefronts, apartments, and basements. State administrators failed to conduct facility inspections, verify service delivery through customer interviews, or scrutinize business owners receiving approximately $10 million annually in taxpayer funds. New York Post reporters visiting 13 facilities found little evidence of medical support being administered—just free lunch and games for able-bodied individuals rather than genuine services for vulnerable populations.

The Stunning Scale of Medicaid Waste

This Brooklyn case exists within a national crisis. Federal estimates place Medicaid losses to fraud and errors at 6 percent of benefits annually, totaling $37 billion in 2025. Some analysts argue actual waste is substantially larger when accounting for excluded categories of improper payments. New York’s Medicaid spending alone jumped from $55 billion in 2013 to $116 billion by 2025, with federal taxpayers covering 60 percent of costs. Governor Hochul herself characterized the related Consumer Directed Personal Assistance Program as “a racket,” citing TikTok advertisements recruiting individuals at $37 per hour to care for relatives who may not actually need care. The comparison is stark: New York’s Medicaid spending is 2.5 times higher than Florida’s despite Florida having a larger population.

Multiple Guilty Pleas Signal Broader Investigation

On January 15, 2026, Antao and Wasef pleaded guilty in federal court in Brooklyn to conspiring to defraud Medicaid. Both defendants agreed to collectively forfeit approximately $1 million. They became the sixth and seventh individuals to plead guilty in this case, suggesting the investigation extends beyond the primary operators. Federal agents identified Zakia Khan and Ahsan Ijaz as ringleaders who owned and operated the fraudulent health care businesses. Authorities seized millions in fraud proceeds, including bank accounts, jewelry, real estate, and luxury items. The case remains active with ongoing investigations and asset forfeiture proceedings.

$68M stolen in New York Medicaid fraud scheme | Wake Up America https://t.co/teFwUFSK5g via @YouTube @realDonaldTrump @AGPamBondi With today’s technology there’s no excuse for this to be happening!

— BadaBing (@kimberlyma19323) January 23, 2026

Legitimate Patients and Providers Pay the Price

When fraudsters steal $68 million from Medicaid, vulnerable populations lose access to genuine services. Elderly and disabled individuals who depend on legitimate social adult day care programs face increased scrutiny and potential service reductions as programs confront budget constraints and enhanced oversight. Honest providers see their reputations tarnished by association with fraudulent operators. Federal and state taxpayers absorb the direct financial loss, with federal taxpayers specifically funding 60 percent of New York’s $116 billion annual Medicaid spending. The scheme diverted resources from authentic health care services while undermining public confidence in Medicaid administration. State legislators have demanded Governor Hochul undertake comprehensive Medicaid audits and program restructuring following the July 2024 discovery.