77 Fake Daycare Centers in One Square Mile: The Medicaid Fraud Story the Media Buried Since 2013
I Called This. Nobody Wanted to Hear It.
When the Feeding Our Future scandal broke out of Minnesota, the media and a chunk of the political right framed it as a niche story about one community in one state. I said it then and I will say it again now: that was the tip of the iceberg. I called it fraud infrastructure, not a fraud incident. The difference matters.
The FBI just raided dozens of so-called social adult care facilities across New York City. Adult daycare centers. Medicaid-funded operations that are supposed to provide meals and supervision to functionally impaired seniors. What investigators actually found should make your blood boil.
Here Is What Your Tax Dollars Were Funding
- Centers paying seniors kickbacks up to $1,000 a month just to show up and get counted
- Medicaid billing for services that were never provided
- Sign-in sheets pre-filled in advance to fake attendance records
- Billing for patients who were dead or out of the country
- 77 facilities in a single one-mile radius in Queens, many operating out of empty rooms or shuttered storefronts
This is not sophisticated financial crime. This is not some genius scheme. This is filling out forms and collecting checks from a government that was not paying attention on purpose.
The Media Knew About This in 2013. They Didn’t Care.
The press reported on adult daycare fraud in New York back in 2013. Twelve years ago. Centers were openly recruiting able-bodied seniors with casino trips, cash, and free transportation. It was documented. It was published. And then it was ignored because cleaning it up was politically inconvenient.
Now Kathy Hochul says she is embarrassed. The Staten Island DA is charging providers for billing Medicaid for dead patients. That is great. But where was this energy for the last decade?
The uncomfortable truth is this: vague eligibility standards combined with reactive oversight is a fraud invitation, not an accident. When you let people self-certify that they need help with everyday activities, with minimal verification, you have built a machine that criminals will operate.
Why You Should Be Angry About This
These are not victimless crimes. Every fraudulent Medicaid claim:
- Drains resources from people who actually need care
- Raises costs for every legitimate program in the system
- Gets paid for by you, the taxpayer, with no vote on the matter
I will give credit where it is due. The current administration pushing these raids is doing exactly what I have argued for years. Go after waste and fraud at scale. Make it visible. Make it costly. This is not partisan, it is basic accountability.
But do not let politicians take a victory lap on cleaning up a mess that was documented and ignored for twelve years. The question you should be asking is not why they are raiding these places now. The question is why it took this long.
