Staten Island, New York — Two operators of a Staten Island adult daycare center have been arrested in connection with an alleged Medicaid fraud scheme that prosecutors say generated more than $530,000 in fraudulent billings over approximately four months.

Yangsim Oum, 79, the owner of SI Day Care Center Inc., and her daughter, Juyone Choe, 49, the center’s program director, were arrested Tuesday, according to the Staten Island District Attorney’s Office. The investigation, dubbed “Operation Golden Grift,” centers on allegations that the facility billed Medicaid for services that were never provided to hundreds of seniors.

Prosecutors say some of the claims involved individuals who were dead or outside the country when the services were supposedly delivered. The allegations are part of a broader investigation into suspected fraud involving adult daycare providers across New York City.

Mother and Daughter Face 457-Count Indictment

Oum and Choe were charged in a 457-count indictment alleging that they obtained more than $530,000 through fraudulent Medicaid billings between April 17 and August 25.

According to prosecutors, approximately $13,000 of the alleged fraudulent billing involved at least 32 seniors who were reportedly dead or overseas during the periods when services were claimed.

The charges concern SI Day Care Center Inc., located on Forest Avenue in Staten Island. Investigators allege that the defendants submitted claims for services that were not actually provided.

District Attorney Michael McMahon criticized the alleged conduct during a press conference announcing the indictment.

McMahon accused the defendants of treating older residents as “pawns in a vast criminal enterprise” and argued that the case represented a serious breach of trust involving vulnerable members of the community.

The allegations have not been proven in court. Oum and Choe are entitled to due process as the criminal case proceeds.

What Charges Could the Defendants Face?

The mother and daughter each face a potential sentence of up to 15 years in prison if convicted of the top charge, healthcare fraud in the second degree, according to the reported indictment.

They also face hundreds of counts of first-degree falsifying business records.

The case is expected to focus on whether the daycare submitted inaccurate claims for services, whether the billed services were actually delivered and what the defendants knew about the transactions. Prosecutors have not established guilt through a trial, and the charges remain allegations at this stage of the proceedings.

McMahon also warned that investigators suspect the Staten Island case may be part of a wider problem involving social adult daycare providers.

“This is just the tip of the iceberg,” he said, expressing concern that other facilities could be involved in similar alleged activities.

State and Federal Agencies Expand Medicaid Fraud Investigation

The arrests came amid a broader coordinated enforcement operation targeting suspected fraud in New York’s social adult daycare program.

According to State Health Commissioner Dr. James McDonald, the New York State Department of Health and the Office of the Medicaid Inspector General worked alongside state and federal law enforcement agencies.

Authorities are investigating suspected activities that include money laundering, kickbacks, improper billing and other forms of alleged fraud.

McDonald said the efforts had resulted in more than 100 referrals to the attorney general for investigation and prosecution.

The referrals do not mean that every provider involved has been charged or found guilty. They indicate that authorities have referred cases for further examination and potential legal action.

Federal agents from Homeland Security Investigations were also seen at adult daycare locations in Brooklyn during the operation, while Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz visited two facilities in Queens.

Gov. Kathy Hochul described the wider crackdown as part of a major effort to combat fraud and abuse involving public programs.

Seniors Could Be Affected as Daycare Centers Come Under Scrutiny

Social adult daycare centers generally provide daytime support for older adults who need assistance because of physical limitations or cognitive decline.

California DoorDash Driver Found Dead in Tesla Trunk After 3-Month Investigation Leads to Arrest

These facilities can offer meals, supervision, activities and social interaction, helping families care for relatives who cannot safely spend the entire day alone.

Officials have emphasized that allegations involving providers should not automatically be taken as evidence of wrongdoing by every center or its employees.

Some of the locations searched during the crackdown were reportedly providing legitimate services to seniors. Prosecutors said arrangements were being made to connect affected participants with responsible providers where necessary.

McMahon stressed that seniors should not lose access to essential support because of the investigation.

The priority, he said, was to prevent additional victims while ensuring that community members who rely on adult daycare services were not left without care.

What Happens Next in the Operation Golden Grift Case?

The Staten Island case is part of a larger effort to investigate potential Medicaid fraud across New York City’s senior care sector.

Investigators will continue examining billing records, service documentation and other evidence to determine whether the alleged scheme involved additional transactions or participants.

The wider investigation could lead to further referrals, charges or enforcement actions, although the outcome of any individual case will depend on the evidence and legal proceedings.

For now, Oum and Choe face serious criminal allegations, while authorities continue pursuing suspected fraud involving public healthcare funds.

What do you think should be done to protect seniors and prevent Medicaid fraud while ensuring legitimate adult daycare centers can continue serving families? Share your thoughts in the comments below.