Two Queens men face federal charges for allegedly orchestrating a $120 million fraud scheme targeting Medicare and Medicaid through a pharmacy and adult day care centers.
Inwoo Kim, 42, and Daniel Lee, 56, both of Flushing, allegedly paid cash kickbacks to elderly patients to fill unnecessary prescriptions and enroll in day care services that were never provided, according to a complaint unsealed Friday in Brooklyn federal court.
The decade-long scheme drained millions from taxpayer-funded programs meant to help vulnerable seniors.
“The defendants allegedly turned a pharmacy and social adult day care centers meant to help senior citizens into a $120 million Medicare and Medicaid fraud scheme,” said Assistant Attorney General A. Tysen Duva.
The charges target “those who prey upon the vulnerable so they can steal from American taxpayers.”
Kim owned Royal Adult Daycare, Happy Life Inc., and an unnamed pharmacy. Lee served as program director at Happy Life.
Between 2016 and 2026, the pair allegedly distributed cash and supermarket gift certificates to lure Medicare and Medicaid recipients. Text messages revealed the scope of the scheme.
“Please give the $10,000 to the Korean members first,” Kim allegedly wrote to a co-conspirator. Lee texted about payments, writing, “I left the envelope [for a patient] with Tony [Kim].”
The defendants allegedly submitted claims exceeding their facilities’ permitted capacity. They withdrew significant cash from controlled bank accounts to fund the kickback payments.
“These charges are part of this Office’s commitment to protecting federal programs and prosecuting those who steal from them,” stated U.S. Attorney Joseph Nocella Jr.
Law enforcement executed search warrants and seized multiple bank accounts during the arrests. Both men face conspiracy to commit health care fraud charges carrying a maximum 10-year prison sentence.
The investigation involved HHS-OIG, FBI, IRS Criminal Investigation, and New York State’s Office of the State Comptroller. The case exemplifies the Health Care Fraud Strike Force’s ongoing efforts.
Since 2007, the strike force has charged more than 6,200 defendants, who collectively billed federal programs more than $45 billion. The defendants are presumed innocent until proven guilty.