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Brooklyn Operator Arrested in Alleged $38 Million Medicaid Day‑Care Fraud

Prosecutors say the scheme used recruiters, kickbacks, fake sign‑in sheets, laundered payments to bill Medicaid for services not provided

Overview

  • Pervez Siddiqui and seven co‑defendants were arrested and indicted on allegations they ran a kickback and false‑billing operation through two Brooklyn adult day‑care centers.
  • Authorities allege the scheme submitted about $38 million in Medicaid claims for services that beneficiaries rarely or never received and paid some recipients cash to enroll.
  • The indictment reportedly describes recruiters paid to enroll seniors, forged or inflated sign‑in sheets that exceeded occupancy limits, and use of shell companies and disguised checks to launder proceeds.
  • Siddiqui is identified as a founder and board member of a related nonprofit, APNA Community Services, which received a recent grant, and reporting notes his local political ties and donor history.
  • Prosecutors say the case is now entering criminal proceedings and investigators are examining how the alleged conduct exposed vulnerabilities in Medicaid oversight and state program payments.