Zakia Khan sentenced to 76 months for Medicaid fraud

Key Developments:

• Zakia Khan gets 76 months for Medicaid fraud scheme
• Court orders over $56m restitution and $5m forfeiture

ISLAMABAD (Arab News) — September 12, 2026: A Brooklyn woman has been sentenced to 76 months in federal prison for her leadership role in a Medicaid fraud and illegal kickback scheme that involved approximately $64 million in fraudulent claims, according to the US Department of Justice.

Zakia Khan, 55, was sentenced by US District Judge Natasha C. Merle in federal court in Brooklyn. She was also ordered to pay more than $56 million in restitution and forfeit $5 million in fraud proceeds, including two properties, cash and gold jewellery seized during a search of her home.

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According to the Justice Department, Khan owned two social adult daycare centres in Brooklyn — Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc. She also owned Responsible Care Staffing Inc., a home health care fiscal intermediary, and Tanwee Services Inc., which prosecutors said was used to receive and disguise proceeds from the scheme.

Federal prosecutors said the scheme operated from approximately October 2017 through July 2024. Khan and marketers working with her allegedly provided kickbacks and bribes to Medicaid recipients to encourage them to enrol at the daycare centres. The businesses subsequently submitted claims for services that, according to prosecutors, were either not provided or were induced through the kickback arrangement.

The DOJ said the two daycare centres submitted approximately $64 million in fraudulent claims to Medicaid, with the programme paying about $56 million. Multiple business entities were allegedly used to move and conceal proceeds and to generate cash for payments to Medicaid recipients and marketers.

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The department said Khan pleaded guilty in August 2025 to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. Her guilty plea followed an investigation by the Department of Health and Human Services Office of Inspector General, Homeland Security Investigations in New York and the New York City Police Department.

“Social adult day care and home health services are designed to support seniors, not line the pockets of fraudsters,” said Miranda L. Bennett, acting deputy inspector general for investigations at the Department of Health and Human Services Office of Inspector General.

Zakia Khan on an undercover recording paying illegal kickbacks inside her office at Happy Family in Brooklyn, New York City, USA. CREDIT: US Department of Justice.

“Today’s sentence sends an important message that anyone who illicitly exploits the Medicaid program will be held accountable to the full extent of the law,” Bennett added.

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The Justice Department said the case involved the submission of false claims and the use of multiple companies to facilitate the alleged fraud and kickback payments. Khan’s sentence followed her admission of guilt rather than a trial verdict.

The case is part of a wider series of federal investigations into alleged fraud involving US government healthcare programmes, but Khan’s case is being prosecuted on its own facts and does not establish any connection to unrelated healthcare fraud cases involving other individuals or organisations.

The Justice Department’s latest sentencing announcement was issued on September 11, 2026, following the sentencing in Brooklyn.

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