Two Queens Men Charged in $120 Million Pharmacy Fraud Scheme

Inwoo Kim and Daniel Lee accused of defrauding Medicaid and Medicare through fake adult day care and pharmacy services.

Published on Feb. 9, 2026

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Federal prosecutors have charged two men from Queens, New York with running a $120 million fraud scheme that involved billing Medicaid and Medicare for adult day care and pharmacy services that were never provided. Inwoo Kim and Daniel Lee are accused of using their businesses, Royal Adult Day Care Center and Happy Life, to illegally obtain funds from the government healthcare programs.

Why it matters

This case highlights the ongoing issue of healthcare fraud, which costs taxpayers billions of dollars each year. The alleged actions of Kim and Lee not only deprived vulnerable seniors of proper care, but also undermined public trust in community-based healthcare providers who are trying to serve patients honestly.

The details

According to the complaint, Kim and Lee submitted claims for services that were never provided at their adult day care centers. They also allegedly paid illegal cash kickbacks to Medicaid recipients to get them to fill prescriptions at Kim's pharmacy. Prosecutors say the men withdrew significant cash from their accounts to fund the kickbacks and bribes.

  • The alleged fraud scheme began in 2016.
  • The complaint was unsealed in Brooklyn on February 9, 2026.

The players

Inwoo Kim

Also known as 'Tony Kim' and 'Long Jin,' a 42-year-old resident of Flushing, Queens who is accused of running the fraud scheme.

Daniel Lee

Also known as 'Daniel Yang,' a 56-year-old resident of Flushing, Queens who is accused of participating in the fraud scheme.

Z & W Empire Enterprise, Inc.

The company that did business as Royal Adult Day Care Center and Happy Life, the facilities at the center of the alleged fraud.

Joseph Nocella, Jr.

The U.S. Attorney for the Eastern District of New York who announced the charges against Kim and Lee.

A. Tysen Duva

The Assistant Attorney General of the Justice Department's Criminal Division, which investigated the case.

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What they’re saying

“The defendants allegedly turned a pharmacy and social adult day care centers meant to help senior citizens into a $120 million Medicare and Medicaid fraud scheme.”

— A. Tysen Duva, Assistant Attorney General of the Justice Department's Criminal Division

What’s next

The judge will decide on Tuesday whether to allow Kim and Lee to be released on bail.

The takeaway

This case underscores the need for stronger oversight and accountability measures to prevent healthcare fraud, which can deprive vulnerable populations of essential services and cost taxpayers billions. It also highlights the challenges faced by honest, community-based healthcare providers in building trust with patients.