Brooklyn man pleads guilty in $65M Medicaid fraud scheme

A Brooklyn man pleaded guilty to defrauding New York State Medicaid of roughly $65 million through claims for social adult day care and home health care services that were not provided, the Justice Department announced.

Ahsan Ijaz, 29, pleaded guilty to conspiracy to commit health care fraud. He is scheduled to be sentenced March 10, 2027, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

According to court documents cited by the department, Ijaz was an owner of Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., both social adult day care centers in Brooklyn. He was also an owner of Responsible Care Staffing Inc., a Brooklyn-based home health care fiscal intermediary.

Over approximately seven years, Ijaz’s businesses paid cash kickbacks and bribes to Medicaid recipients to induce them to enroll with the businesses, the department said. The businesses then billed Medicaid for services that were not provided, including when certain recipients were outside the United States at the time of the claimed services.

Ijaz is the 10th defendant to plead guilty in connection with the scheme, according to the department.

The announcement was made by Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York; Acting Deputy Inspector General for Investigations Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General; Acting Special Agent in Charge Pete Gizas of Homeland Security Investigations New York; and NYPD Commissioner Jessica S. Tisch.

The HHS Office of Inspector General, Homeland Security Investigations New York and the NYPD investigated the case.

Deputy Chief Patrick J. Campbell and Trial Attorney Leonid Sandlar of the National Fraud Enforcement Division’s Health Care Fraud Section are prosecuting the case. Assistant U.S. Attorney Claire Kedeshian of the Eastern District of New York is assisting with forfeiture matters.