Brooklyn Scheme Costs Taxpayers Millions

Two Brooklyn women pleaded guilty to orchestrating a staggering $68 million Medicaid fraud scheme that went undetected for seven years, exposing catastrophic oversight failures in New York’s taxpayer-funded healthcare system that cost American taxpayers tens of millions while liberal administrators turned a blind eye.

Story Snapshot

Elaine Antao and Manal Wasef admitted to running a seven-year Medicaid fraud operation from October 2017 to July 2024, billing $68 million for fake healthcare services
The scheme exploited New York’s social adult day care program, which exploded from 40 facilities in 2013 to nearly 400 with virtually no government oversight
Federal taxpayers bear 60 percent of New York’s bloated $116 billion annual Medicaid spending, meaning American workers funded most of this theft
Nationwide Medicaid fraud costs $37 billion annually, yet liberal administrators continue expanding programs with minimal accountability measures

Seven Years of Unchecked Theft

Elaine Antao and Manal Wasef operated as marketers and recruiters for two fraudulent social adult day care centers and a home health care intermediary from October 2017 until federal authorities finally shut down their operation in July 2024. The defendants recruited fake patients using cash kickbacks and bribes, then submitted fraudulent billing claims to Medicaid for healthcare services that were never provided. This brazenly simple scheme—requiring no sophisticated technology or elaborate cover—succeeded because New York State administrators failed to conduct basic facility inspections, verify service delivery, or interview business owners despite funneling approximately $10 million annually to these fraudulent entities.

Explosive Growth Without Oversight

New York’s social adult day care program expanded from just 40 facilities in 2013 to almost 400 by the time this fraud was discovered, with centers appearing in storefronts, apartments, and basements throughout New York City’s five boroughs. This explosive growth occurred with minimal government oversight, creating perfect conditions for widespread fraud. Investigative reporters visiting 13 facilities found little evidence of actual medical support being offered—instead, able-bodied individuals received free lunch and games on the taxpayer dime. Even Governor Hochul characterized the related Consumer Directed Personal Assistance Program as “a racket,” citing TikTok advertisements recruiting people at $37 per hour to provide care for relatives who may not need any assistance.

Taxpayers Bearing the Burden

The $68 million stolen in this single scheme represents just a fraction of the massive Medicaid fraud problem plaguing America. Federal estimates show Medicaid loses 6 percent of benefits to errors and fraud annually—approximately $37 billion in 2025 alone—though actual waste may be substantially higher. New York’s Medicaid spending has exploded from $55 billion in 2013 to $116 billion by 2025, with federal taxpayers covering 60 percent of costs. This means hardworking Americans across the country are funding New York’s fiscal mismanagement and inadequate fraud prevention. Remarkably, New York’s Medicaid spending runs 2.5 times higher than Florida’s despite Florida having a larger population, exposing the structural inefficiencies and loose spending controls that enable such massive theft.

Systemic Failures Enable Fraud

Federal prosecutors revealed that perpetrating this fraud required no brilliant scheme—criminals simply submitted fake paperwork for services never provided and received government payments without question. State administrators’ complete failure to implement basic verification procedures enabled the operation to continue for seven full years. No facility inspections were conducted, no customer interviews verified actual service delivery, and business owners receiving millions in taxpayer funds faced no meaningful scrutiny. Five other individuals have already pleaded guilty in connection with this case before Antao and Wasef’s January 15, 2026 guilty pleas, demonstrating the scheme’s extensive reach. Federal agents have seized millions in fraud proceeds including bank accounts, jewelry, real estate, and luxury items, though the $1 million forfeiture represents a tiny fraction of the $68 million stolen.

Calls for Accountability

Following the July 2024 discovery of this massive fraud, New York State Senate members demanded Governor Hochul undertake a comprehensive audit of all Medicaid programs. This case exemplifies the consequences of liberal policies that prioritize expanding government programs without implementing adequate accountability measures or fraud prevention systems. The ease with which these criminals operated for seven years demonstrates that taxpayer money flows freely while oversight remains practically nonexistent. Legitimate Medicaid beneficiaries who genuinely need services may now face increased scrutiny and reduced access as programs face justified budget constraints. Meanwhile, legitimate healthcare providers see their reputations undermined by fraudulent operators who exploited lax government administration to enrich themselves at taxpayers’ expense. This represents government failure at its worst—reckless spending without basic safeguards.