Queens, New York — Federal prosecutors have charged two men in an alleged decade-long scheme that authorities say defrauded Medicaid and Medicare of more than $120 million through fraudulent adult day care and pharmacy billing.
The Justice Department accused Inwoo Kim, 42, and Daniel Lee, 56, of conspiring to commit health care fraud by bribing patients to enroll in social adult day care programs and submit unnecessary prescription claims. Both men face up to 10 years in prison if convicted.
According to charging documents, Kim owned two adult day care centers in Flushing known as Happy Life and Royal, while Lee served as program director. Prosecutors allege the scheme began as early as 2016 and involved offering patients cash and grocery gift cards in exchange for participation and prescription submissions tied to a pharmacy Kim previously owned.
Over roughly ten years, Medicaid allegedly paid $62 million for day care services, while Medicare paid $58 million for prescription drugs connected to the operation. Investigators also cited suspicious sign-in sheets, including records for days when facilities were closed.
Kim was released on a $250,000 bond following his initial court appearance. Attorneys for both defendants have not publicly commented.
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