One of the Biggest Fraud Rings You Never Heard of: Social Adult Daycares — Billions in NYC alone
As a taxpayer I am sickened at the abuse and contempt of hardworking Americans.
CMS Administrator Dr. Mehmet Oz joined investigative influencer Nick Shirley in New York City to confront operators of suspected Medicare and Medicaid fraud schemes. Visiting elderly daycare centers and medical equipment companies, there are major red flags, including three medical supply companies allegedly operating out of a single apartment with no inventory. Calling the suspected scams a massive theft of taxpayer dollars, Oz said the government has failed to stop fraudsters who he claimed are making millions each month through bogus billing operations.
In NYC alone billions in fraud, sanctioned by Democrat politicians who are voting themselves massive raises, have been discovered.
‘Major Red Flags’: Dr. Oz Joins MAGA Influencer Nick Shirley to Confront Alleged Fraudsters
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz joined MAGA influencer Nick Shirley to confront alleged fraudsters in New York City, with Oz stressing that the experience showed “major red flags” in a video posted on Friday.
Oz, a member of President Donald Trump’s administration, accompanied Shirley to a variety of different elderly daycare centers and medical equipment companies across the city, confronting folks who they say are committing both Medicare and Medicaid fraud — many of whom either did not speak English or seemed hesitant to answer questions about the services they provide.
“One of the largest fraud schemes in America is taking place in New York City as billions of dollars are being defrauded by organized Korean and Chinese mafias, along with other foreigners operating and stealing taxpayer dollars,” Shirley claimed.
“It’s almost certainly fraud,” Oz said of an apartment they visited where three durable medical companies allegedly operate from, purporting that the benefactors make “$2 to $8 million a month.”
“These guys grow like vermin,” the Centers for Medicare & Medicaid Services administrator continued. “There are twice as many durable medical suppliers in South Florida as McDonald’s, because it’s easier to open one than a bank account,” alleging that there, “the Cuban government is involved.”
His and Shirley’s conversation continued:
OZ: To open three in one apartment makes no sense, especially when there’s no product there. All you’re doing is gaming the system, and the fact that we didn’t audit it, didn’t catch it, didn’t stop it, and they’re probably out there making money infuriates me. It should bother folks out there, ’cause it’s your tax dollars paying for this
SHIRLEY: So, it’s literally impossible for someone to be operating a durable medical company outside — inside of an apartment?
OZ: Inside of an apartment with no goods and two other durable medical equipment suppliers? That’s a major red flag — the kind you walk into battle with.
In one NYC neighborhood, dozens of adult daycares bill millions to taxpayers. Now the feds have questions.
By Laura Geller, Rachel Gold, Tom Hanson, CBS News, July 1, 2026:
Dozens of Medicaid-funded social adult daycare centers are packed into one New York City neighborhood, a CBS News data analysis has found.
The proliferation of the facilities has caught the attention of federal authorities, who confirmed they are investigating across New York whether the rapid spread of centers catering to seniors is indicative of fraud.
“[It] begs the question: How many social adult daycare centers do you need?” Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, told CBS News.
Social daycare facilities offer meals, personal care, social activities and other assistance to seniors and people with disabilities. Those services are then billed to the state government and covered by federal and state tax dollars.
The costs have been rising — especially in New York state, a CBS News data analysis found. Medicaid paid adult daycare providers $3.35 billion nationwide in 2024, and 17% of that money went to the 375 facilities across New York state — more than any other state. New York spending on these adult daycares ballooned in recent years, with the bill to taxpayers nearly quadrupling from 2018 to 2024.
The facilities in Flushing bill Medicaid for the equivalent of more than 90% of local Medicaid-eligible seniors.
Those numbers have not gone unnoticed. Investigations are underway into some social adult daycare centers across New York with potential federal action against them anticipated, CBS News has learned.
The epicenter of the spike in spending is the bustling neighborhood of Flushing, Queens, the densest cluster of social adult daycare facilities in the country: 64 within a one-mile radius, according to a CBS News analysis of Medicaid data.
Dr Oz currently leads a sweeping federal crackdown on Medicare and Medicaid fraud in his role as the Administrator of the Centers for Medicare & Medicaid Services (CMS).
Here’s his latest:
And this:
Nick Shirley: Here is the full 53 minutes of my crew and I exposing New York fraud, we uncovered over $190,000,000 in fraud as these fraudsters use the elderly and needy to commit fraud through adult and personal home care scams in NYC. Your tax dollars are paying for elderly Koreans and Chinese to play ping pong and do tai chi, while the fraudsters give $ kickbacks to those who enroll. Like it and share this video, the fraud must STOP.
We ALL work way too hard and pay too much in taxes for fraudsters to steal from our pockets. These fraudsters have been able to defraud American taxpayers for years without any pushback from the public and politicians. Time is up.
AUTHOR
Pamela Geller
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EDITORS NOTE: This Geller Report is republished with permission. ©All rights reserved.
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