Federal agents raid NYC adult daycares that billed Medicaid for services they never provided

Federal agents raided multiple adult daycare centers in New York City on Tuesday as part of a broader investigation into more than 100 locations suspected of potential Medicaid fraud. The raids are part of a multi-month effort to combat fraud and the misuse of taxpayer funds, according to New York Governor Kathy Hochul.

Officers with Homeland Security Investigations (HSI) were seen outside two Brooklyn adult daycare facilities suspected of fraudulent activity, according to the New York Post. Agents were also seen carrying evidence boxes from the locations. In a post on X on Tuesday, HSI New York emphasized that billing public programs for services that were not provided constitutes fraud.

“Billing public programs for care, transportation or other services that were never provided is fraud, NOT a paperwork mistake,” the agency wrote. It added that HSI is “working to uncover schemes that exploit neighborhoods & steal taxpayers’ hard-earned money.”

According to The New York Times, roughly a dozen centers were raided on Tuesday. The enforcement stemmed from two separate investigations that were later connected. One investigation is part of a federal crackdown involving the FBI, IRS, the Department of Health and Human Services, as well as several New York State agencies and the NYPD. The other was conducted by the office of the Staten Island district attorney, Michael E. McMahon, and focused on an adult daycare operation run by three members of the same family.

McMahon is set to announce charges related to the Staten Island investigation alongside federal and state officials. Prosecutors are expected to allege that the center’s operators fraudulently billed Medicaid hundreds of thousands of dollars for services provided to clients who were deceased or did not attend.

Hochul has said that New York is working with federal authorities to crack down on fraud involving publicly funded services. The state has specifically been investigating its Social Adult Day Care program, which as of November 2025, includes 373 centers.