Justice Department · Sunday, September 13, 2026
Brooklyn daycare owner gets 76 months in $64 million Medicaid fraud
The File desk · Sep 13, 2026, 10:14 AM UTC
Status
Confirmed from a Justice Department Office of Public Affairs release dated Sept. 11, 2026. Sentences or status of any co-conspirators are not updated in this release.
A Brooklyn woman is going to federal prison for a huge Medicaid kickback scheme. On Sept. 11 the Justice Department said Zakia Khan, 55, of Brooklyn, was sentenced to 76 months. Prosecutors say she led a fraud at two social adult daycare centers and a home health company. Between about 2017 and 2024 the centers billed Medicaid roughly $64 million for services that were not provided as claimed. Medicaid paid about $56 million. Marketers and recipients got cash kickbacks to sign people up. Khan also must pay more than $56 million in restitution and forfeit $5 million in proceeds, including two properties, cash, and gold jewelry seized at her home. She pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks.
A Brooklyn woman is going to federal prison for a huge Medicaid kickback scheme.
On Sept. 11 the Justice Department said Zakia Khan, 55, of Brooklyn, was sentenced to 76 months.
Prosecutors say she owned two social adult daycare centers — Happy Family Social Adult Day Care Center and Family Social Adult Day Care Center — plus a home health company.
From about October 2017 through July 2024, the release says, marketers sent Medicaid recipients to those centers. Khan and the marketers paid cash kickbacks so people would sign up. The centers then billed Medicaid for services that were not provided as claimed.
Between 2017 and 2024, Happy Family and Family Social billed Medicaid about $64 million. Medicaid paid about $56 million on those claims.
Khan must pay more than $56 million in restitution and forfeit $5 million in proceeds, including two properties, cash, and gold jewelry taken from her home.
She pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. This release does not update sentences for anyone else in the case.
What is still unknown or disputed
- Sentences or status of any co-conspirators are not updated in this release.
Primary sources
Every claim in this story is drawn from the documents below. If a fetch failed, that is recorded on the card.
Source 1
Brooklyn Adult Daycare Owner Sentenced to Prison for Leadership Role in $64M Medicaid Fraud Scheme
U.S. Department of Justice · September 11, 2026
Zakia Khan, 55, of Brooklyn, sentenced to 76 months. Happy Family and Family Social billed Medicaid approximately $64 million; Medicaid paid approximately $56 million. Over $56 million restitution; $5 million forfeiture including two properties, cash, and gold jewelry. Guilty plea August 2025.
https://www.justice.gov/opa/pr/brooklyn-adult-daycare-owner-sentenced-prison-leadership-role-64m-medicaid-fraud-scheme