A prominent Pakistani-American businessman and several associates have been accused of orchestrating a massive $38 million Medicaid fraud scheme through two Brooklyn adult day care centers, according to the New York Post.
Key Figures and Allegations
Pervez Siddiqui, 78, is a well-known community leader, pharmacy owner, and member of Brooklyn Community Board 13. He was arrested on Monday alongside seven alleged co-conspirators. The group used two social adult day care centers, APNA Adult Daycare and Ashiana Social Adult Daycare, to submit millions of dollars in fraudulent Medicaid claims between 2019 and December 2025.
The operation enrolled elderly Medicaid recipients who rarely attended the facilities. In return for signing up, many participants received cash payments funded by fraudulent Medicaid reimbursements.
Co-Conspirators Named
Also named in the indictment are Shazia Bibi (also known as Shazia Wattoo), Abdul Aziz, Shair Ali, and recruiters Zebun Ahmed, Josna Begum, Saira Khatoon, and Atia Shahnaz.
Recruiters were paid kickbacks to bring Medicaid recipients into the program. The defendants then billed New York's Medicaid system for services that were never provided, generating roughly $38 million in false claims. To hide the scheme, the group created fake attendance records and sign-in sheets that sometimes exceeded the facilities' legal occupancy limits. They used billing staff based in Pakistan and moved money through shell companies using payments labeled as "gifts," "dividends," "medicine," and even "laddu," the South Asian sweet.
Obstruction and Investigation
After federal agents executed search warrants in December 2025, some defendants attempted to obstruct the investigation by telling employees to replace mobile phones and delete data.
A source familiar with the investigation told the New York Post that recruiters searched for Medicaid recipients in low-income neighborhoods, bus stops, doctors' offices, and public housing developments. "Marketers are going around looking for the Medicaid card. They stop people on the street, at bus stops. They go into doctors’ offices. They go into NYCHA [government housing] where they know people are low-income. They ask, ‘Do you have a Medicaid card?’" the source said.
The source claimed that seniors or their relatives received around $500 per month simply for allowing their Medicaid information to be used. More strikingly, prosecutors said some beneficiaries continued generating claims while living overseas. "The patient is in Pakistan, they’re in Morocco. They’re not even in this country," the source claimed.
Political Connections
The case has also drawn attention because of Siddiqui's political connections. The businessman owns around 15 pharmacies in New Jersey and has donated thousands of dollars to Democratic political campaigns over the years. Through his involvement with the American Pakistani Public Affairs Committee, he attended meetings and events with Democratic figures, including New York City mayor Zohran Mamdani, Attorney General Letitia James, and former mayor Eric Adams. No elected officials have been accused of wrongdoing, and none are mentioned in the indictment. The indictment also does not accuse Siddiqui's pharmacies or other affiliated businesses of involvement in the fraud.
Broader Context
The allegations emerge amid growing scrutiny of New York's adult day care industry. Last year, federal prosecutors charged operators of another Brooklyn-based scheme accused of stealing $68 million from Medicaid through similar tactics. Earlier this year, two Queens men were charged in a separate case involving an alleged $120 million fraud linked to adult day care centers. New York spends more Medicaid money per patient than any other state, making the program a frequent target for large-scale fraud investigations.
