$68 Million Medicaid HEIST Uncovered

January 20, 2026

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A massive Medicaid fraud scheme has been unraveled, revealing a $68 million exploitation of taxpayer-funded resources.

Story Highlights

Two individuals plead guilty in a $68 million Medicaid fraud case.
The scheme involved illegal kickbacks and fraudulent billing.
Fraud persisted for nearly seven years before prosecution.
Seven individuals have now pleaded guilty in this investigation.

Fraudulent Scheme Exposed

In a landmark case against healthcare fraud, two Brooklyn marketers, Manal Wasef and Elaine Antao, pleaded guilty to defrauding Medicaid of $68 million. Operating as marketers and recruiters, they facilitated illegal kickback payments to Medicaid recipients, inducing them to use services that were either unnecessary or never provided. This scheme, which spanned nearly seven years from October 2017 to July 2024, highlights significant vulnerabilities in Medicaid’s oversight mechanisms.

The fraudulent activities centered around two Brooklyn-based social adult day care centers and a home health care fiscal intermediary. These entities systematically billed Medicaid for services that were not rendered, exploiting the reimbursement system to generate illicit profits. This case is part of a larger federal investigation, resulting in seven total guilty pleas, including five other individuals who have already admitted to their roles in the scam.

Two Brooklyn residents pleaded guilty to a conspiracy that stole $68 million from Medicaid.

The scheme involved bribes, fake services, and money laundering — with more arrests expected as the case unfolds. pic.twitter.com/siHMxfrEHr

— NLDR (Noldor) Media (@NLDRMedia) January 16, 2026

Prosecution and Consequences

The U.S. Attorney’s Office for the Eastern District of New York is leading the prosecution, emphasizing a strong stance against healthcare fraud. Both Wasef and Antao face up to 10 years in prison, with sentencing pending. They have also agreed to forfeit $1 million, a fraction of the defrauded amount, as part of their plea agreements. Assistant Attorney General Duva underscored the Department of Justice’s commitment to prosecuting those who exploit taxpayer-funded programs.

The guilty pleas serve as an immediate deterrent to similar fraudulent activities, sending a clear message about the serious consequences of defrauding government health programs. The closure of the implicated entities disrupts the operational capacity of the fraud network, although the $1 million forfeiture does little to recover the full $68 million loss.

Long-Term Implications and Industry Impact

This case exposes systemic vulnerabilities in Medicaid’s fraud detection mechanisms, prompting calls for enhanced oversight. The fraud’s extensive reach underscores the need for robust regulatory frameworks, particularly in the adult day care sector. The involvement of a home health care fiscal intermediary highlights potential weaknesses in the Medicaid reimbursement process, likely leading to increased scrutiny of these systems.

On a broader scale, the prosecution sets a precedent for tackling similar kickback schemes, reinforcing the federal commitment to safeguarding taxpayer resources. As the investigation unfolds, it may influence policy discussions on Medicaid oversight, aiming to prevent future exploitation and protect vulnerable populations from being used as pawns in fraudulent schemes.