The online investigation follows federal cases accusing Queens operators of using kickbacks to generate millions of dollars in health care claims.
NEW YORK CITY, NY — Independent video journalist Nick Shirley has turned his attention to New York City’s social adult day care industry, alleging that some businesses serving older residents may be using cash payments, gifts and questionable attendance practices to generate government-funded health care claims.
Shirley released a video titled “I Investigated NYC Billion Dollar Fraud Scheme,” documenting visits to adult day care centers, pharmacies and related businesses in Queens. He said his reporting identified more than $190 million in suspected fraud. That figure has not been independently confirmed, and the video itself does not establish that every business shown committed a crime.
The allegations have drawn attention because they resemble conduct described in recent federal health care fraud cases in New York. In February, the Justice Department charged two Queens men with operating an alleged $120 million Medicare and Medicaid scheme involving two social adult day care centers and a pharmacy. Prosecutors said the businesses used cash and supermarket gift certificates to attract beneficiaries and submitted claims for services or prescriptions that were unnecessary, not provided or tied to illegal payments.
According to the federal complaint, pharmacy and day care owner Inwoo Kim and program director Daniel Lee paid alleged kickbacks between 2016 and 2026. Prosecutors said some claims submitted by the adult day care centers exceeded the facilities’ permitted capacity. The government also alleged that the men discussed payments in text messages and withdrew large amounts of cash from accounts they controlled.
Kim and Lee were charged with conspiracy to commit health care fraud. Each faces up to 10 years in prison if convicted. The allegations have not been proven in court, and both men are presumed innocent unless found guilty beyond a reasonable doubt. The case is being investigated by federal health officials, the FBI, IRS Criminal Investigation and New York state authorities.
Shirley’s video does not appear to be the source of that prosecution, which was announced months before his latest reporting. However, the federal case provides documented evidence that investigators were already examining the same type of alleged conduct highlighted in the video: enrolling seniors through financial incentives, billing public programs and using pharmacies or related service providers to increase revenue.
A separate federal case announced in October 2024 accused eight people of participating in a $68 million Medicaid scheme involving two Brooklyn social adult day care centers and a home care financial intermediary. Prosecutors alleged that marketers received payments for recruiting Medicaid recipients and then paid bribes or kickbacks to those recipients. The businesses allegedly billed Medicaid for services that were not provided or were obtained through illegal payments.
Those defendants faced charges that included health care fraud, kickback conspiracy and money laundering. Federal officials said shell companies and other business entities were allegedly used to move proceeds and generate cash for the payments. As with the Queens case, the charges are allegations, and the defendants are entitled to a presumption of innocence.
Social adult day care programs generally provide supervision, meals, activities and other nonmedical support for older adults or people with disabilities. Their services may be connected to Medicaid-funded long-term care plans. Payments or gifts offered to influence a beneficiary’s choice of provider can violate federal or state law, particularly when public health programs are billed for resulting services.
Shirley accompanied Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz during parts of the New York investigation. Their visits included sections of Flushing, Queens, where they questioned the concentration of adult day care centers and pharmacies. Shirley described interactions with workers and local residents and presented records he said showed large amounts of public money flowing to some providers.
The video relies heavily on observations made during site visits, interviews and publicly available data. An apparently quiet facility, a locked door or an unusually large payment total may raise questions, but those details alone do not prove fraudulent billing. Attendance records, patient files, claims data, bank transactions and testimony would be needed to establish whether specific services were falsely reported or illegally induced.
No broad criminal case covering every facility featured in Shirley’s video had been publicly announced as of Monday. Federal authorities have not confirmed his overall estimate, and it remains unclear whether each provider he questioned is under investigation. The latest reporting nevertheless adds public scrutiny to an industry already facing multiple federal prosecutions over alleged kickbacks and services billed but not delivered.
Author note: Last updated July 13, 2026.