The federal government’s war on health-care fraud just walked straight through the front door of a social adult daycare in Flushing, Queens.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz joined independent journalist Nick Shirley in New York City, where they confronted people connected to facilities drawing taxpayer-funded payments.
Oz’s newest update shows the pair questioning a man described as a manager at one Flushing center. Asked who his boss was and what he was doing to stop fraud, the man could not provide an answer.
WATCH: @nickshirleyy and I confronted a supposed manager of a social adult daycare in Flushing, Queens, NYC.
When we asked him who his boss was or how to confront the fraud in social adult daycares – he couldn’t give us an answer.
The War on Fraud continues. pic.twitter.com/nqDLP6zQhA
— Dr. Oz CMS (@DrOzCMS) July 13, 2026
An unanswered question is not proof of a crime, and nobody shown in the clip has been convicted merely because the conversation went sideways.
But the numbers surrounding this corner of New York’s Medicaid system are so extreme that federal investigators are now digging in.
Shirley’s full 53-minute investigation exploded across social media after he said his crew identified more than $190 million in suspicious payments connected to adult daycare and personal home-care operations in New York City.
He visited facility after facility, compared what he saw with public payment data and pressed workers about enrollment, attendance and the services taxpayers were supposedly financing.
NOW: Nick Shirley is being praised nationwide for focusing MORE on massive fraud in NYC and Minnesota than major news networks with BILLIONS of dollars.
Now DR. OZ is involved to expose it all!
SHIRLEY: “Why aren’t people reporting on this? It’s not right or left. It’s what’s WRONG and what’s RIGHT. Our money was being defrauded by Somali Learing Centers, adult daycares…”
“I’m not trying to paint any narrative when I go out and do these videos.” @nickshirleyy pic.twitter.com/Vn7Hb4nrcN
— Eric Daugherty (@EricLDaugh) July 12, 2026
The $190 million figure is Shirley’s allegation based on the records and facilities his team examined. It is not yet a final government loss calculation, and each questioned payment will have to be tested against enrollment, attendance and billing records.
Independent data show why the allegations cannot simply be waved away.
A CBS News investigation found 64 Medicaid-funded social adult daycare facilities packed within a single one-mile radius in Flushing, the densest concentration anywhere in the country.
CBS reported that Medicaid paid social adult daycare providers $3.35 billion nationwide in 2024. Seventeen percent of that money went to 375 facilities in New York, where taxpayer spending on the program nearly quadrupled between 2018 and 2024.
The Flushing figures were even harder to ignore.
Facilities there billed Medicaid for the equivalent of more than 90 percent of all Medicaid-eligible seniors living in the neighborhood. While the local eligible senior population grew about 20 percent from 2018 through 2024, the number of seniors billed by those daycares shot up 390 percent.
Those numbers do not prove that every center is crooked. They do create an enormous red flag.
One of the most widely shared exchanges involved a nearby center complaining that another facility was allegedly poaching clients with kickbacks. Shirley says that tip led him to a one-story operation reporting more than 7,000 patients and roughly $12 million in taxpayer payments.
WOW! Nick Shirley exposes that he found an adult daycare in NYC BLOWING THE WHISTLE on a location STEALING their business by offering kickbacks in a huge fraud scheme.
Then he found them claiming to have 7,000 THOUSAND PATIENTS and $12M in taxpayer funds in one small building.
“They’re like, well, we’re losing all our clients because this daycare is offering kickbacks! I said, well, it’s fraud! They say, yes, the fraud is very much real.”
“And so then I kept digging and I went to this next location and out one location, they had 7,000 patients, more than 7,000 patients, and they’re billing up to 12 million dollars.”
“And it’s only one story building!” @nickshirleyy pic.twitter.com/vsLHwdkZFd
— Eric Daugherty (@EricLDaugh) July 12, 2026
Only billing and enrollment records can establish whether the payments were lawful. Investigators can answer the questions by matching names, dates, attendance logs and claims instead of relying on a tense exchange at the door.
A separate federal case shows that the danger reaches far beyond a viral video.
In February, IRS Criminal Investigation announced charges against two Queens men in a separate alleged $120 million Medicare and Medicaid scheme involving a pharmacy and two social adult daycare centers.
Federal prosecutors allege Inwoo Kim and Daniel Lee used cash and supermarket gift certificates as illegal kickbacks to induce beneficiaries to fill prescriptions or enroll in adult daycare. The complaint also alleges claims were submitted for services that were medically unnecessary, never provided or generated through kickbacks and bribes.
The government says Medicare and Medicaid paid approximately $120 million during the alleged scheme, which ran from 2016 into 2026. Both defendants face health-care fraud conspiracy charges and are presumed innocent unless proven guilty.
New York officials say they have not been sitting still.
The state Department of Health told CBS that it has referred 387 centers for investigation since 2021, with roughly one-third of those cases elevated to the state attorney general for possible law-enforcement action. The department also pointed to new attendance monitoring, oversight and compliance reviews.
That response only sharpens the central question: if hundreds of centers have already required investigation, how much money escaped before anyone looked closely?
Social adult daycare programs can provide real help to seniors and people with disabilities. Meals, personal care and safe social activity matter.
But if an operator invents attendance, pads enrollment or pays kickbacks, the theft lands twice: taxpayers lose the money, and vulnerable people lose resources meant for their care.
Oz and Shirley did not prove a $190 million criminal case by walking through a handful of doors. They did expose enough unanswered questions to make aggressive audits, subpoenas and prosecutions – wherever the evidence supports them – impossible to avoid.
The war on fraud just found a very crowded front.
This is a Guest Post from our friends over at WLTReport. View the original article here.
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