Two Queens Men Charged in $120M Medicare and Medicaid Fraud Scheme

Alleged kickback operation targeted seniors and diverted taxpayer funds from health care programs.

Published on Feb. 9, 2026

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Two Queens men have been charged with orchestrating a scheme that netted approximately $120 million in Medicare and Medicaid funds through illegal kickbacks, bribes, and fraudulent claims for prescriptions and adult day care services that were never provided.

Why it matters

Federal prosecutors said the alleged kickback operation targeted seniors and diverted taxpayer funds from Medicare and Medicaid, programs that finance health care and social adult day care services for eligible beneficiaries. The announcement followed other recent federal and state actions in New York targeting adult day care and Medicaid-related kickback schemes.

The details

Prosecutors charged Inwoo Kim, 42, of Flushing, and Daniel Lee, 56, of Flushing, with conspiracy to commit health care fraud. The pair allegedly paid cash and supermarket gift certificates to induce Medicaid recipients and Medicare beneficiaries to fill prescriptions at Kim's pharmacy and enroll in his social adult day care centers. Between 2016 and 2026, Kim and Lee allegedly exchanged text messages coordinating illegal payments and, at times, submitted claims for day care services that exceeded the centers' permitted capacity.

  • In 2016, the alleged kickback scheme began.
  • The scheme continued through 2026, when the charges were filed.

The players

Inwoo Kim

Also known as 'Tony Kim' and 'Long Jin,' a 42-year-old Flushing resident who owned a pharmacy and two social adult day care centers.

Daniel Lee

Also known as 'Daniel Yang' and 'Donghee Yang,' a 56-year-old Flushing resident who served as program director at one of Kim's adult day care centers.

Department of Justice (DOJ)

Federal agency that charged Kim and Lee with conspiracy to commit health care fraud.

Department of Health and Human Services Office of Inspector General (HHS-OIG)

Federal agency that participated in the multi-agency investigation.

Federal Bureau of Investigation (FBI)

Federal agency that participated in the multi-agency investigation.

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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 dollar Medicare and Medicaid fraud scheme.”

— A. Tysen Duva, Assistant Attorney General, DOJ Criminal Division (DOJ press release)

“The defendants charged today allegedly stole $120 million from federal health care programs by luring the elderly to their businesses with illegal cash payments.”

— Joseph Nocella Jr., U.S. Attorney for the Eastern District of New York (DOJ press release)

“Using the backdrop of an adult day care center, it's alleged the two charged today had devised an elaborate scheme filled with bribery, kickbacks and good old-fashioned deception.”

— Harry T. Chavis Jr., Special Agent in Charge, IRS-CI New York (DOJ press release)

What’s next

Kim and Lee face up to 10 years in prison if convicted of conspiracy to commit health care fraud, with the case being prosecuted by the DOJ Fraud Section as part of the Health Care Fraud Strike Force program.

The takeaway

This case highlights the ongoing problem of Medicaid and Medicare fraud schemes targeting vulnerable populations, and the need for continued vigilance and enforcement efforts to protect taxpayer-funded health care programs.