Brooklyn daycare owner sentenced over Medicaid fraud and kickback scheme

Zakia Khan was sentenced to 76 months in prison after pleading guilty in August 2025 to conspiracy to commit healthcare fraud and conspiracy involving healthcare kickbacks. She was also ordered to pay more than $56 million in restitution and forfeit $5 million in proceeds and assets.

According to court documents, Khan and marketers induced Medicaid recipients to enroll at two adult daycare centers through alleged bribes and kickbacks, then billed Medicaid for services allegedly not provided as represented. The centers fraudulently billed approximately $64 million, according to the DOJ; the source states that Medicaid paid approximately $56 million.