Adult day-care owner pleads guilty in $65 million Medicaid scheme
Oct 4, 2026 edition · GC-2026-0170 · Published 2026-10-04 · Version 2 · Final
Ahsan Ijaz pleaded guilty to a conspiracy involving approximately $65 million in New York Medicaid claims for unprovided adult day-care and home-care services. DOJ describes enrollment kickbacks and billing while beneficiaries were outside the country. Sentencing was still pending.
What happened
On October 2, DOJ announced that Ahsan Ijaz, a Brooklyn business owner, pleaded guilty to conspiracy to commit healthcare fraud involving approximately $65 million in New York State Medicaid claims. The release identifies Happy Family Social Adult Day Care Center, Family Social Adult Day Care Center and Responsible Care Staffing, a home-health fiscal intermediary, as businesses he owned. The admitted scheme involved claims for social adult day-care and home-care services that were not provided. The guilty plea establishes the reported criminal resolution at this point; it does not establish a sentence or final financial recovery.
According to the announcement, over approximately seven years the businesses paid cash kickbacks and bribes to induce Medicaid beneficiaries to enroll, then billed for services that had not occurred. Some claims concerned beneficiaries who were outside the United States on the claimed service dates. DOJ identifies Ijaz as the tenth defendant to plead guilty in the scheme, connecting the enrollment arrangements with the underlying attendance and service records. The release schedules sentencing for March 10, 2027 and states a maximum penalty of ten years. It also explains that the judge will determine the actual sentence after considering the guidelines and other statutory factors.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks
- Jurisdiction
- Federal
Why it matters
The action identifies a control failure relevant to provider, payer or vendor oversight. Its procedural status must be kept separate from any allegation.
Recommended action
Audit referral remuneration, service evidence and beneficiary attendance, including claims during overseas travel. Escalate unsupported Medicaid claims.
Case details
- agencies
- U.S. Department of Justice
- entities
- Ahsan Ijaz, Adult day-care and home-care companies
- action Type
- Criminal resolution
- event Date
- 2026-10-02
- alleged Conduct
- Medicaid kickbacks and billing for services not provided.
- resolution
- Guilty plea; sentencing remains pending.
Operational lessons
- Audit referral remuneration, service evidence and beneficiary attendance, including claims during overseas travel. Escalate unsupported Medicaid claims.
Sources
- Social adult day-care owner pleads guilty to $65 million Medicaid fraudOfficial · DOJ · 2026-10-02 · Source review 2026-10-04
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