Boro Park Raid Update #3: White House Involved in Fraud Crackdown

By Y.M. Lowy

The investigation behind yesterday’s adult day-care raids has drawn attention at the highest levels of government, with the White House and Governor Kathy Hochul joining efforts to crack down on Medicaid fraud. 

The raids across Brooklyn, Queens and Staten Island were part of a months-long investigation targeting more than 100 social adult day-care providers suspected of potential fraud or illegal activity. Hochul has said she personally traveled to Washington to meet with federal officials about the investigation.

While federal agents were collecting evidence from adult day-care centers across the city, authorities also made two arrests on Staten Island in connection with a separate investigation involving an adult day-care operation.

The Staten Island investigation focused on a center inoperated by three members of one family. Investigators suspect Medicaid was billed for services for clients who were either deceased or had not attended the center.

The Staten Island district attorney is expected to provide additional information about the case, which authorities describe as a multimillion-dollar fraud scheme.

Tuesday’s raids also coincided with a White House announcement of a new initiative to encourage the public to report suspected fraud involving government programs.

President Donald Trump and Vice President JD Vance announced the Fraud Whistleblower Incentive Program. Trump also presented YouTuber Nick Shirley with a $10,000 reward for his widely viewed investigation into alleged fraud involving child-care centers in Minnesota. The program is intended to reward tips that help uncover fraud, with the Justice Department outlining awards of up to $30,000 for qualifying information.

Dr. Mehmet Oz, administrator of the federal Centers for Medicare and Medicaid Services, has also been involved in the crackdown. Earlier this year, Oz visited locations alongside Shirley as part of his investigation into alleged fraud. Oz was also present in Queens during Tuesday’s enforcement actions, where federal officials delivered warning letters to adult day-care centers over concerns about their billing practices.

Shirley also investigated New York City adult day-care centers over the summer, visiting facilities in Queens and raising questions about their operations and public funding. Officials have not confirmed whether his investigation is directly connected to Tuesday’s raids.

BoroPark24 will continue to provide updates as more details emerge.