Federal authorities have unsealed a criminal complaint in Brooklyn charging Inwoo Kim and Daniel Lee, two men from Queens, New York, with conspiracy to commit health care fraud. Prosecutors allege the pair ran a large scheme that defrauded Medicare and Medicaid of approximately $120 million by abusing adult day care centers and a pharmacy meant to serve senior citizens.
According to the complaint, the alleged fraud took place between 2016 and 2026. During this period, the defendants are accused of paying illegal bribes and kickbacks and submitting claims for services that were medically unnecessary or never provided. Federal officials said the scheme targeted elderly and vulnerable individuals while draining taxpayer-funded health care programs.
Authorities stated that Medicare and Medicaid exist to support seniors, not to be exploited for personal gain. The complaint outlines how the defendants allegedly turned legitimate-looking businesses into vehicles for fraud.
How the Alleged Adult Day Care and Pharmacy Scheme Operated
The complaint states that Inwoo Kim, also known as “Tony Kim” and “Long Jin,” owned a pharmacy and two social adult day care centers in Queens. These included Z & W Empire Enterprise Inc., doing business as Royal Adult Daycare, and Happy Life Inc. The facilities were licensed to provide social services and care to senior citizens.
Daniel Lee, also known as “Daniel Yang” and “Donghee Yang,” served as the program director at Happy Life Inc. Prosecutors allege that Kim and Lee worked together to carry out the scheme.
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According to investigators, the defendants paid illegal bribes and kickbacks to Medicare beneficiaries and Medicaid recipients. These payments were allegedly made in cash and supermarket gift certificates. The purpose was to persuade seniors to fill prescriptions at Kim’s pharmacy and to enroll in the adult day care centers.
The complaint further alleges that the defendants submitted claims to Medicare and Medicaid for services that were not medically necessary and, in many cases, not provided at all. Prosecutors say that at times, claims were submitted for adult day care services that exceeded the legal capacity of the centers.
Investigators also cited text messages allegedly exchanged by the defendants discussing illegal payments. These messages reportedly referenced distributing cash and leaving envelopes for individuals. Authorities say these communications support claims that bribery and kickbacks were part of the operation.
To fund the illegal payments, Kim and Lee allegedly withdrew large amounts of cash from bank accounts they controlled. In total, Medicare and Medicaid paid about $120 million for prescription drugs and adult day care services that were unnecessary, not provided, or induced through illegal payments.
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Investigation, Charges, and Law Enforcement Action
The case is being investigated by several federal and state agencies, including the Department of Justice, FBI, Department of Health and Human Services Office of Inspector General, IRS Criminal Investigation, and New York State oversight agencies. Authorities described the investigation as a coordinated effort to protect federal health care programs.
Law enforcement executed multiple search warrants as part of the investigation. Several bank accounts connected to the alleged scheme were seized during the arrests. Investigators stated that financial records were critical in tracing how funds were withdrawn and used to pay bribes.
Both Inwoo Kim and Daniel Lee are charged with conspiracy to commit health care fraud. If convicted, they each face a maximum sentence of 10 years in prison.
The case is being prosecuted by the Justice Department’s Fraud Section as part of the Health Care Fraud Strike Force Program, which targets large-scale fraud involving federal health care programs. Since 2007, the program has charged thousands of defendants nationwide.
Federal authorities emphasized that pharmacies and adult day care centers are meant to serve seniors, not exploit them. As stated in the complaint, the charges are allegations only, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
