Korean Men Charged in $120 Million Medicaid Fraud Scheme at New York Day Care

Authorities say Daniel Lee and Inwoo Kim ran a senior care facility that bribed elderly clients to enroll and used their prescriptions to steal from Medicaid.

Published on Feb. 11, 2026

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Two Korean men in Queens, New York, have been charged with defrauding Medicaid of $120 million through their senior care facility, Happy Life Adult Day Care. Authorities allege that Daniel Lee and Inwoo Kim bribed elderly clients to enroll in their program and then used their prescriptions to steal from Medicaid, with doctors and healthcare workers also involved in the scheme.

Why it matters

This case highlights ongoing issues of Medicaid fraud, particularly within immigrant communities, and the need for stronger oversight and accountability measures to prevent such large-scale theft of taxpayer funds intended to help the elderly and vulnerable.

The details

According to the Department of Justice complaint, Lee and Kim allegedly encouraged seniors to enroll in their day care program by offering them $500 kickbacks, which were reduced to $300 if they actually used the services. The men also allegedly forced clients to use a pharmacy owned by Kim, where they would receive prescriptions for unnecessary medications like Diclofenac Epolamine pain relief patches. Kim would then make $525 for each 60-pack prescription and give $100 to the senior. Lee allegedly threatened to cut off the kickbacks if seniors used other pharmacies.

  • The alleged fraud scheme took place at two Happy Life Adult Day Care locations in Flushing, Queens.
  • The Department of Justice complaint was filed in February 2026.

The players

Daniel Lee

One of the two Korean men charged in the $120 million Medicaid fraud scheme involving a senior care facility in Queens, New York.

Inwoo Kim

One of the two Korean men charged in the $120 million Medicaid fraud scheme involving a senior care facility in Queens, New York. Kim owned a pharmacy that was part of the alleged scheme.

Happy Life Adult Day Care

The senior care facility in Flushing, Queens, that was at the center of the alleged $120 million Medicaid fraud scheme.

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What they’re saying

“Please give $10,000 to the Korean members first.”

— Unnamed co-conspirator (New York Post)

What’s next

The two men each face up to 10 years in prison for their alleged roles in the Medicaid fraud scheme.

The takeaway

This case highlights the ongoing issue of Medicaid fraud, particularly within immigrant communities, and the need for stronger oversight and accountability measures to prevent such large-scale theft of taxpayer funds intended to help the elderly and vulnerable.