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Staten Island adult day care operators charged in $530,000 Medicaid fraud scheme
A mother and daughter who ran an adult day care center on Staten Island face a 457-count indictment, accused of billing Medicaid more than $530,000 for seniors they never served, including some who were dead or abroad.
A mother and daughter who ran an adult day care center on Staten Island have been charged with defrauding Medicaid of more than $530,000 by billing for services to seniors who never received them, the Richmond County District Attorney's Office said.
Yangsim Oum, 79, the owner of SI Day Care Center Inc. on Forest Avenue, and her daughter Juyoung Choe, 49, the center's program director, were arrested Tuesday in an investigation dubbed "Operation Golden Grift." A 457-count indictment accuses them of collecting the money through false billings between April 17 and Aug. 25, including about $13,000 for services supposedly provided to at least 32 seniors who were dead or out of the country at the time.
Each faces up to 15 years in prison if convicted of the top count, second-degree health care fraud. They are also charged with hundreds of counts of first-degree falsifying business records.
"All these defendants saw were dollar signs," District Attorney Michael McMahon said at a news conference, accusing the pair of using the borough's seniors as pawns. "This is just the tip of the iceberg," he added, warning that other adult day care centers may be running similar schemes.
The arrests were part of a coordinated crackdown on Tuesday by state, local and federal authorities targeting about 100 adult day care providers across New York City. State Health Commissioner Dr. James McDonald said the investigation has produced more than 100 referrals to the state attorney general, while Dr. Mehmet Oz, the Turkish American administrator of the Centers for Medicare & Medicaid Services, visited two facilities in Queens. Gov. Kathy Hochul described the operation as part of a massive effort to combat fraud and abuse.
Prosecutors said seniors who attended the Staten Island center are being connected with other providers. "No members of our community will be displaced or left without critical services they need," McMahon said.
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