Two Plead Guilty to $68M Brooklyn Adult Day Care and Home Healthcare Fraud Scheme

By the Constantine Cannon Whistleblower Team

On January 15, Elaine Antao and Manal Wasef pleaded guilty to conspiring to defraud Medicaid by offering kickbacks for services not rendered at two Brooklyn social adult day cares and a home healthcare company. The proceedings took place before United States District Judge Natasha C. Merle in federal court in Brooklyn. Each defendant faces up to 10 years in prison.

According to court documents, Antao and Wasef served as marketers and recruiters for two Brooklyn-based social adult day cares, Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., and Responsible Care Staffing Inc., a home healthcare fiscal intermediary.

How Did the Alleged Scheme Involve Kickbacks and Bribes?

From around October 2017 to July 2024, they referred Medicaid recipients to these facilities in return for illegal kickbacks and bribes.[1] They also allegedly provided illegal kickbacks and bribes to Medicaid recipients for services billed that were either not rendered or induced by these payments.

Wasef and Antao utilized various business entities to launder the fraud proceeds and generate cash for the kickbacks and bribes. As part of their plea agreements, they agreed to forfeit approximately $1 million collectively. Wasef and Antao have become the sixth and seventh individuals to plead guilty in this case.

The Anti-Kickback Statute and Stark Law

Violating the Anti-Kickback Statute and Stark Law is just one form of healthcare fraud. The statute and law forbid medical providers from offering or accepting kickbacks, payments, or anything of value for patient referrals covered by government healthcare programs like Medicare and Medicaid. They also restrict certain financial relationships that can improperly influence medical decision making.

How Can Whistleblowers Fight Healthcare Fraud?

Although it is unknown whether a whistleblower was involved in this case, individuals are often the ones to step forward with valuable information to jumpstart enforcement actions. Whistleblowers can bring a case under the qui tam provisions of the False Claims Act, which allows private parties to file lawsuits on behalf of the government. If successful, whistleblowers can receive up to 30% of the government’s recovery as a financial reward.

Constantine Cannon partner Marlene Koury commented: “Whistleblowers play a crucial role in protecting patients and maintaining the integrity of government healthcare programs by reporting fraud.”

Constantine Cannon Has Significant Experience Representing Healthcare Fraud Whistleblowers

If you believe you have information concerning healthcare fraud, please contact us. We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation. We have significant experience and success representing whistleblowers bringing False Claims Act cases in healthcare fraud and other practice areas.

Speak Confidentially With Our Whistleblower Attorneys

Sources:

[1] See https://www.justice.gov/usao-edny/pr/two-individuals-plead-guilty-68-million-fraud-scheme-brooklyn-based-adult-day-cares.

Tagged in: Anti-Kickback and Stark, Medicaid, Medicaid fraud,