Zakia Khan, 55, was sentenced to 76 months in prison for her leadership role in a Medicaid fraud and kickback scheme run through two social adult day care centers in the Coney Island section of Brooklyn. The centers billed Medicaid about $64 million, and Medicaid paid about $56 million on those claims. The court also ordered more than $56 million in restitution and a $5 million forfeiture that includes two properties, cash and gold jewelry.
Sentence and plea in the Eastern District of New York
The sentence was announced on September 9, 2026, in a release from the U.S. Attorney’s Office for the Eastern District of New York. Khan had pleaded guilty in August 2025 to conspiracy to commit health care fraud and to conspiracy to defraud the United States and pay health care kickbacks. The release describes her as having a leadership role in the scheme, and that is the posture on the record: a guilty plea followed by a sentence of 76 months, imposed by United States District Judge Natasha C. Merle.
The 76 months is the term the court imposed, not a ceiling or a prosecutors’ request. It follows a plea rather than a jury verdict, so there was no trial finding; the conviction rests on Khan’s own admission to the two conspiracy counts.
How the day care billing worked
The release says the scheme ran from approximately October 2017 through July 2024. Khan owned Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., both in the Coney Island section of Brooklyn. She also owned Responsible Care Staffing Inc., described as a home health care fiscal intermediary, and Tanwee Services Inc., which the release says was used to receive and disguise fraud proceeds.
Prosecutors say Khan and a group of marketers paid kickbacks and bribes to Medicaid recipients to induce them to sign up for services that Khan then billed to Medicaid. According to the release, recipients received illegal cash kickbacks in exchange for filling out false attendance sheets, and the services were never actually provided as represented to Medicaid.
The money figures carry two different meanings. Across the seven years, the two day care centers billed Medicaid approximately $64 million, which is the amount claimed. Medicaid paid approximately $56 million on the false and fraudulent claims, which is the amount that left the program. The restitution order of more than $56 million tracks the paid figure, not the billed one.
Two properties, cash and gold jewelry in the forfeiture
Alongside the prison term, Khan was ordered to forfeit $5 million in fraud proceeds. The release says that includes two properties, cash and gold jewelry seized during a search of her home. The forfeiture is a separate order from the restitution: restitution is owed to the victim, here Medicaid, while forfeiture takes the proceeds of the crime itself.
The release does not give a street address, a value for either property, the amount of cash, or a weight or appraisal for the jewelry, and none is stated here. What the record does say is that the $5 million forfeiture is the figure attached to those assets and to the proceeds of the fraud.
What the prosecutors and investigators said
United States Attorney Joseph Nocella, Jr. said: “Today’s sentencing sends a strong message of deterrence in our District. Our Office and the Justice Department are focused on protecting American taxpayers from fraudsters and as such, we will vigorously prosecute corrupt health care owners and operators in our district.”
Pete Gizas, the acting Special Agent in Charge of Homeland Security Investigations, said Khan “acted with staggering greed, leading a scheme to defraud Medicaid of millions of dollars intended for people in need.” He added that she and her co-conspirators set up social adult day cares but, instead of providing care and services to “our most vulnerable neighbors,” enriched themselves with cash, gold and property.
NYPD Commissioner Jessica S. Tisch said Khan “stole $64 million from Medicaid through bribes and kickbacks,” calling the conduct not only deeply illegal but also immoral, and said the NYPD will continue to investigate anyone who exploits government programs for personal gain. Her figure matches the billed amount in the release; the amount Medicaid actually paid was about $56 million.
A note on the figures in the case record
The web address of the sentencing release carries the number 68 million in its slug, while the text of the release states $64 million billed and $56 million paid. The body of the release governs, and every figure in this report comes from it. The release names no co-defendants in its text, though Gizas refers to Khan’s co-conspirators and the release refers to marketers who referred Medicaid recipients in exchange for kickbacks.
The record as of the date of the release is complete on the main points: the plea was entered in August 2025, the sentence was imposed on September 9, 2026, and the restitution and forfeiture orders were part of that sentencing. The Eastern District of New York’s release, which carries the statements of the U.S. Attorney, Homeland Security Investigations and the NYPD, is the primary record for all of them.
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This article was written with AI assistance and verified line by line against the primary records linked in it.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
