Two women from Brooklyn have confessed to orchestrating a multi-million dollar fraud scheme that stole funds from a state Medicaid programme. Manal Wasef and Elaine Antao, both aged 46, entered guilty pleas for conspiracy to commit health care fraud.
The Mechanics of a Multi-Million Dollar Scam
According to the United States Department of Justice, the pair worked as marketers and recruiters for three specific businesses: Happy Family Social Adult Day Care Center Inc., Family Social Adult Day Care Center Inc., and Responsible Care Staffing Inc. Their criminal activities spanned a period from October 2017 to July 2024.
The fraud involved a clear exchange: Wasef and Antao would refer Medicaid recipients to these day care centres and a home health company. In return, they received illegal kickbacks and bribes. Crucially, prosecutors state that the services billed for were never actually provided to the patients.
To conceal their illicit gains, the duo employed multiple business entities to launder the fraud proceeds. This laundered cash was then used to fund the ongoing cycle of kickbacks and bribes paid to the Medicaid recipients themselves.
Justice Department Cracks Down on Healthcare Fraud
In a statement, Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division condemned their actions. “The defendants were large-scale recruiters who bribed patients with laundered cash and billed Medicaid over $68 million for services that were not provided,” Duva said.
He emphasized that the guilty pleas demonstrate the Department's commitment to “rooting out fraud in government health care programs.” As part of their plea agreement, the fraudsters have agreed to forfeit approximately $1 million.
Special Agent in Charge Ricky J. Patel of Homeland Security Investigations in New York highlighted the human cost, stating the defendants “placed profit over people and public well-being and stole $68 million in welfare funds meant for those who need it most.”
Sentencing and Wider Implications
Wasef and Antao are not alone in this scheme. They are the sixth and seventh individuals to plead guilty out of eight people originally charged. The other accused include business owners Zakia Khan, Ahsan Ijaz, Oasmneah Hamdi, Ansir Abassi, and Amran Hashmi.
The case sheds light on a broader systemic issue, referencing hundreds of “middleman” firms that act with minimal oversight between caregivers and Medicaid.
The two women now await their sentencing. Elaine Antao is scheduled for sentencing on May 20, while Manal Wasef will be sentenced on May 27. Each faces a maximum prison term of up to 10 years for their roles in the extensive fraud operation.
