Every year, billions of taxpayer dollars vanish into the black hole of Medicaid fraud. Not through clerical errors or honest miscalculations — through deliberate, organized theft by people who treat America’s safety net like a personal ATM. The grifts are getting bolder, the dollar amounts more grotesque, and the political connections more brazen.
What’s worse? The people who should be stopping it keep cashing the checks. The latest bust-out of Brooklyn is a case study in everything broken about entitlement spending in this country — and the cozy political relationships that keep the money flowing in all the wrong directions.
From The Post Millennial:
A Pakistani-American businessman who has often cozied up to Democrats in New York City has been accused of running an adult daycare scam to defraud Medicaid to the tune of $38 million.
Pervez Siddiqui, 78, was taken into custody on Monday along with seven other alleged co-conspirators in the scam, according to the New York Post. Siddiqui, as well as the others, is alleged to have been running a Medicaid kickback and false-billing fraud operation with two adult daycares in Brooklyn, the APNA Adult Daycare and Ashiana Social Adult Daycare.
Thirty-eight million dollars. Let that marinate. And yet this barely cracks the top three. Ohio’s Medicaid system got torched for $12 billion in fraud tied to Somali and Bhutanese communities. Minnesota’s Feeding Our Future swindle — run largely by Somali-American defendants — topped $250 million. Two Queens men were charged in February with a $120 million adult daycare racket in Flushing. New York already spends 77 percent more per Medicaid patient than the national average. Of course, Brooklyn was going to join the party.
The Democrat donor pipeline
Here’s where it gets spicy. Siddiqui wasn’t some anonymous hustler working the margins. He was a fixture in Democratic political circles — a regular donor who dropped over $10,000 at a time on local candidates. Through his role as board chair of the American Pakistani Public Affairs Committee, he hosted a fundraiser for New York Attorney General Letitia James in 2022. He landed an intimate sit-down with socialist Mayor Zohran Mamdani in December 2025. That’s quite a Rolodex for a man allegedly running a multimillion-dollar swindle.
His alleged co-conspirator Shazia Bibi — described by an investigation source as a barely literate “thug” with “street smarts” — managed to snag a seat next to then-Mayor Eric Adams at a Gracie Mansion dinner. U.S. Senators Schumer and Gillibrand championed a $530,000 federal grant to APNA’s affiliated nonprofit. Taxpayer money in, political access out. Rinse, repeat.
How the racket worked
The operation ran from 2019 through 2025. Recruiters canvassed bus stops, doctors’ offices, and public housing projects hunting for Medicaid cards. Seniors enrolled in daycares they never set foot in, then pocketed $500 monthly kickbacks. The conspirators manufactured fake sign-in sheets, funneled proceeds through shell companies, and disguised payments as “gifts,” “dividends,” and — my personal favorite — “laddu,” a word for Indian sweets. Creative accounting, to put it mildly.
Some enrollees collected payments while living in Pakistan or Morocco. Not visiting. Living there. After the Feds executed a search warrant in December 2025, Siddiqui and Bibi allegedly scrambled to destroy evidence, ordering staff to grab new phones and wipe data.
Zero oversight by design
This wasn’t even Brooklyn’s first adult daycare fraud implosion. A previous $68 million ring run by Zakia Khan got dismantled — and her “patients” simply migrated over to APNA. Insurance companies rubber-stamped every transfer. No flags, no questions.
One source told the New York Post: “There is zero oversight. The fraud will never stop because they don’t want it to stop.”
Hard to argue. When politicians accept the donations, insurance companies collect the premiums, and fraudsters walk away with millions, everybody eats — except the American taxpayers stuck with the tab. Bloated entitlement programs without serious guardrails aren’t a safety net. They’re an open vault. And until we demand actual accountability, the next scandal is already underway.
Key Takeaways
- A $38 million Brooklyn Medicaid scam adds to a nationwide pattern of entitlement fraud.
- The accused ringleader bankrolled top Democrats while allegedly robbing taxpayers.
- Some enrollees collected kickbacks while living overseas with zero accountability.
- Unchecked entitlement spending without oversight is an open invitation to grifters.
Sources: The Post Millennial, New York Post
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