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.
Eyewitness News is told that search warrants are also being executed at businesses in Queens and Staten Island.
Gov. Kathy Hochul said there is an investigation into “suspected fraud in social adult day care programs.”
“We are targeting providers who we believe engaged in illegal activity, ranging from money laundering to kickbacks, to improper billing and other fraudulent activities,” she said.
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…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.