Independent journalist Nick Shirley and CMS Administrator Dr. Mehmet Oz have identified an alleged Medicaid fraud scheme involving New York City senior daycare centers.
The investigation targets the potential misappropriation of public funds intended for elderly care, suggesting that organized crime groups may be diverting millions from vulnerable populations.
Shirley reported on the findings during a July 2026 appearance on ‘The Big Weekend Show’ [1]. He said the investigation uncovered more than $190 million in fraudulent adult-daycare funding [2]. The scheme reportedly centers on kickbacks and fraudulent billing practices within programs located primarily in the Queens borough of New York City [3].
According to Shirley, the operation is not merely a series of administrative errors. He said, "Fraud is very much real" [4]. He said Korean and Chinese mafias are behind the scheme [5].
While some reports suggest the scale of the fraud could reach billions of dollars, other sources maintain the figure at $190 million [2, 6]. The focus remains on how these centers allegedly manipulate Medicaid funding to benefit organized crime syndicates through a complex kickback system [7].
Dr. Mehmet Oz has joined Shirley in the effort to expose these activities. The duo aims to stop the flow of illegal payments and ensure that Medicaid resources are used for their intended purpose, providing care for the elderly [8].
“"We uncovered over $190 million in fraudulent adult-daycare funding"”
This investigation highlights systemic vulnerabilities in the Medicaid reimbursement process for adult-daycare services. If the allegations of organized crime involvement are proven, it suggests a coordinated effort to exploit public health funding through shell operations or kickback loops, which could lead to stricter federal oversight of senior care facilities in New York City.
