Brooklyn Adult Day Care Owner Pleads Guilty to $65M Medicaid Fraud; 10th Defendant in Scheme

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

Ahsan Ijaz, 29, of Brooklyn, was an owner of Happy Family Social Adult Day Care Center, Inc. and Family Social Adult Day Care Center Inc., social adult day care centers located in Brooklyn, and Responsible Care Staffing Inc., a home health care fiscal intermediary in Brooklyn, according to court documents.

Over approximately seven years, Ijaz’s businesses paid cash kickbacks and bribes to Medicaid recipients to induce them to enroll with the businesses and billed Medicaid for services that were not provided, including when certain Medicaid recipients were not in the United States at the time of service, according to court documents.

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

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

Two Minnesota Men Plead Guilty to Defrauding Medicaid Housing Program of More Than $500,000

Hassan Ahmed Hussein and Ahmed Abdirashid Mohamed submitted fraudulent claims for services never provided through now-defunct Housing Stabilization Services program

Two Minnesota men pleaded guilty to defrauding Minnesota’s Housing Stabilization Services program out of more than $500,000 by submitting fraudulent claims for services that were never provided, federal prosecutors announced.

Hassan Ahmed Hussein, 29, and Ahmed Abdirashid Mohamed, 28, both of the Twin Cities area, enrolled Pristine Health LLC as a Medicaid provider, promising to help people with disabilities — including seniors and people suffering from mental illnesses and substance use disorders — find and maintain housing through the State’s now-defunct HSS program, according to court documents.

Instead, Hussein and Mohamed submitted HSS claims to Medicaid for services that were never provided and significantly inflated the claims for higher reimbursement. Pristine Health enrolled approximately 90 Medicaid beneficiaries for HSS, including some who never agreed to receive the services. In total, Pristine Health billed Minnesota Medicaid more than $820,000.

Hussein entered a guilty plea on September 24, 2026, and Mohamed entered a guilty plea on October 1, 2026. Both pleaded to one count of wire fraud and face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing dates will be set by the court at a later date.

“This case is a stark reminder that fraud against public programs is not just a crime against government — it is a betrayal of the most vulnerable among us,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “By diverting resources meant for the elderly, mentally ill, and those suffering from substance abuse, the defendant undermined trust and jeopardized essential services. This guilty plea demonstrates our unwavering resolve to pursue justice, restore integrity, and ensure that taxpayer dollars are used to uplift — not exploit — our communities.”

U.S. Attorney Daniel N. Rosen for the District of Minnesota said his office is committed to maintaining the integrity of public programs.

“The defendants’ guilty pleas bring us closer to obtaining accountability for the American taxpayer,” Rosen said.

FBI Minneapolis Field Office Special Agent in Charge Christopher D. Dotson said the pleas resulted from continued, coordinated effort to stop fraud plaguing social services and healthcare benefits systems.

“These programs are meant to provide critical services to those most in need, not to line the pockets of fraudsters,” Dotson said. “The FBI and our partners remain steadfastly committed to rooting out these frauds and defending the resources of the American taxpayer.”

IRS Criminal Investigation Chicago Field Office Acting Special Agent in Charge Robert J. Kuszynski said protecting programs designed to support vulnerable communities is a top priority.

“The deliberate submission of fraudulent claims undermines the trust placed in these vital services and diverts resources from those who truly need them,” Kuszynski said. “These guilty pleas demonstrate our unwavering resolve to pursue those who exploit public programs for personal gain. We will continue to work alongside our law enforcement partners to ensure accountability and safeguard taxpayer dollars.”