$68 Million Fraud Shocks NY Medicaid

A $68 million Medicaid fraud scheme in New York operated for seven years before finally being exposed, leaving taxpayers and genuine beneficiaries in its wake.

Story Overview

Two individuals plead guilty to a $68 million Medicaid fraud scheme
Fraud involved fake health care services and bribery over seven years
Scheme exploited New York’s social adult day care program
Federal and state oversight failures allowed the fraud to continue

The Fraudulent Scheme Unveiled

Elaine Antao and Manal Wasef, both from Brooklyn, admitted to defrauding Medicaid by concocting a complex kickback and bribery scam. They posed as marketers and recruiters for two social adult day care centers and a home health care intermediary, billing for services that never occurred. The scheme, which began in October 2017, was only discovered and stopped in July 2024, highlighting significant gaps in oversight.

The fraudulent operations were part of a larger pattern of Medicaid fraud across the nation, with New York’s lax oversight of its rapidly expanded social adult day care (SADC) program being a key factor. By 2025, the number of these centers had grown tenfold since 2013, often running without proper medical support and serving as venues for the fraudulent activities uncovered in this case.

Systemic Oversight Failures

The rapid proliferation of SADC centers in New York from just 40 in 2013 to nearly 400 by the time of the investigation created fertile ground for fraud. Reporters found many of these centers offered little medical support, focusing instead on non-essential activities. This lax environment, combined with state administrators’ failure to inspect facilities or verify services, allowed the scheme to thrive unnoticed for years.

Public confidence in New York’s Medicaid administration has suffered due to these oversight failures. The state’s Medicaid spending doubled from $55 billion in 2013 to $116 billion in 2025, with federal taxpayers funding 60% of the costs. This case underscores the urgent need for more stringent program monitoring and auditing to prevent similar frauds in the future.

Legal and Financial Consequences

Antao and Wasef’s guilty pleas come as part of a broader investigation that has already seen five other defendants admit guilt. The ongoing case involves asset seizures, with federal agents confiscating millions in fraud proceeds, including luxury items and real estate. These actions are part of a concerted effort to recover some of the $68 million in taxpayer losses.

$68M stolen in New York Medicaid fraud scheme | Wake Up Americahttps://t.co/3CIbZsAtr6

— ConspiracyDailyUpdat (@conspiracydup) January 23, 2026

The case has sparked legislative demands for a comprehensive audit of New York’s Medicaid programs. Lawmakers argue that without significant reforms, the state remains vulnerable to similar schemes, potentially costing taxpayers millions more. The investigation continues, drawing national attention and highlighting the need for systemic changes in Medicaid oversight.