Full Breakdown
Federal and State Raids Target Adult Day-Care Centers Over Alleged Medicaid Fraud
By Drooid · · How we work
Core Event – October 20, 2026 Raids
On October 20, 2026 federal, state and local agents searched more than a dozen adult-day-care facilities across Brooklyn, Queens, Staten Island and Manhattan. The actions were part of a coordinated investigation into providers suspected of billing Medicaid for services that were never rendered, including to deceased clients. Searches involved the FBI, the IRS, HHS, New York State agencies, the NYPD and Homeland Security Investigations.
Background & Context
The crackdown follows a federal effort announced earlier in the year to address Medicaid fraud in day-care programs, a priority highlighted by the Trump administration in states with Democratic leadership. New York’s “Social Adult Day Care” (SADC) program serves roughly 45,000 Medicaid members statewide and has been under state scrutiny for years, including a June 2026 Justice Department lawsuit alleging inadequate oversight of the state’s $11 billion home-health-care system.
Data & Statistics
- An FBI audit found Medicaid paid roughly $2.4 billion for adult-day-care services from January 2019 through October 2024, and investigators are examining whether portions were misappropriated.
- CBS News reported Medicaid disbursed $3.35 billion nationwide to adult-day-care providers in 2024, with 17 %—the largest state share—going to New York facilities.
- Governor Hochul’s office claimed anti-fraud actions have saved over $15 billion in Medicaid spending, though the calculation was not detailed.
Official Statements & Responses
- Governor Kathy Hochul called the investigation a “month-long coordinated crackdown” and said “every dollar lost to fraud is a dollar that should be used to help New Yorkers, to get care and services they desperately need.” She noted a meeting in Washington, D.C. with Dr. Mehmet Oz, director of CMS, to coordinate the effort.
- The FBI confirmed “law-enforcement activity” in Queens, Staten Island, Brooklyn and other NYC locations as part of ongoing federal investigations.
- A Homeland Security Investigations spokesperson said the agency executed “court-authorized law-enforcement actions” to safeguard public programs funded by taxpayers.
On-the-Ground Reports
Witnesses saw agents loading boxes of evidence from centers on Fort Hamilton Parkway in Borough Park, Sunset Park, and a Flushing location. Some sites posted notices indicating suspension of operations and prohibiting entry. A staff member at a Staten Island family-run center was arrested, according to one outlet; another source reported no arrests at the time of the raids.
Conflicting Reports & Gaps
- Scope of Evidence: The exact number of providers under investigation remains unclear; state officials have referenced “more than 100” suspected providers, but no definitive list has been released.
Verbatim Quotes
- “We’re targeting providers — we believe — who engaged in illegal activity, ranging from money laundering to kickbacks to improper billing, and other fraudulent activities,” — Gov. Kathy Hochul
- “It's usually an enterprise involving several individuals,” — David Shapiro, John Jay College of Criminal Justice
Why It Matters
The investigation targets a segment of Medicaid spending that, according to the FBI audit, accounts for billions of dollars annually. If fraud is confirmed, recovered funds could be redirected to legitimate services for New York’s elderly Medicaid beneficiaries. The raids also signal heightened federal-state collaboration on health-care fraud, potentially influencing future oversight policies for Medicaid-funded programs nationwide.
What’s Next
Federal and state agencies have announced a news conference in Washington, D.C. on Thursday to detail the broader investigation. The FBI has invited the public to submit tips on suspected fraud, indicating the inquiry may expand beyond the initial set of facilities.
