NEW YORK (WABC) — Federal agents are searching several businesses suspected in being involved in Medicaid fraud.At one location in Borough Park, Brooklyn on Tuesday, investigators appeared to be in the Happy Adult Day Care Center on Fort Hamilton Parkway.Authorities believe the senior centers overbilled for services, grossly inflated the number of clients served and engaged in kickbacks.Officials described the effort as a joint operation between the federal and state governments.The FBI issued the following statement:”FBI New York, along with multiple other law enforcement agencies are conducting law enforcement activity in the area of Queens, Staten Island, Brooklyn, and other locations around New York City in connection with ongoing federal investigations.”While President Donald Trump and Gov. Kathy Hochul have clashed on other issues, both administrations are participating in the investigation into what authorities described as multibillion-dollar scams against taxpayers.”Every dollar lost to fraud is a dollar that should be used to help New Yorkers to get care and services they desperately need,” Hochul said.Trump announced a new incentive aimed at encouraging fraud tips, saying whistleblowers would receive 1% of the amount stolen.”If anybody turns anybody in… 1% commission and I think that will be amazing. The kind of money stolen is trillions in this country,” Trump said.Among those eligible for the reward is YouTube journalist Nick Shirley, who was in the Oval Office and has helped trigger investigations in Minnesota and New York.”When you expose fraud, you help save America,” Shirley said.Vice President JD Vance also promoted the initiative.”If you want to help us stop, you get to share in the rewards of what the president has done,” Vance said.While Tuesday’s operations were largely focused on collecting evidence from facilities such as a senior center in Flushing, authorities said there were two arrests on Staten Island.The district attorney there is expected to announce additional details Wednesday, including an indictment involving what authorities describe as a multimillion-dollar scam.———-* Get Eyewitness News Delivered * More New York City news* Send us a news tip* Download the abc7NY app for breaking news alerts * Download our connected TV app Submit a tip or story idea to Eyewitness NewsHave a breaking news tip or an idea for a story we should cover? Send it to Eyewitness News using the form below. If attaching a video or photo, terms of use apply.Copyright © 2026 WABC-TV. All Rights Reserved.
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