A New York adult day care director has pleaded guilty in connection with a $127 million Medicare and Medicaid fraud case, according to the U.S. Department of Justice.
Daniel Lee, 57, of Flushing, pleaded guilty to conspiracy to commit health care fraud and conspiracy to commit money laundering. He served as program director at Happy Life Inc. and Royal Adult Day Care Center in Flushing.
Kickbacks and Claims for Services Never Provided
Prosecutors said that over a ten-year period the centers paid cash kickbacks to Medicaid recipients and submitted claims for services that were never delivered. In some instances, claims were filed for Social Adult Day Care services when the recipients could not possibly have received them because they were hospitalized at the time.
Lee and his co-conspirators also paid kickbacks and bribes to Medicare and Medicaid beneficiaries through a related pharmacy that billed for medically unnecessary prescriptions, according to the department.
Justice Department Cites Decade-Long Scheme
Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division described the conduct as a long-running kickback operation.
"For over a decade, Daniel Lee helped run a brazen kickback scheme that stole from Medicare and Medicaid through fraudulent claims for medically unnecessary prescription drugs and social adult day care services that were never provided," McDonald said, adding that the plea reflects the department's commitment to holding accountable those who exploit federal health care programs for personal gain.
Penalties
Lee faces up to 30 years in prison. His sentencing is scheduled for March 2, 2027.
