Two Queens residents, Inwoo Kim and Daniel Lee, have been indicted on charges related to a sophisticated fraud operation that allegedly bilked Medicare and Medicaid out of $120 million. The scheme, which spanned from 2016 to 2026, involved luring seniors into unnecessary adult day care programs and prescription fills, according to federal prosecutors.
Inwoo Kim, 42, also known by aliases “Tony Kim” and “Long Jin,” along with Daniel Lee, 56, referred to as “Daniel Yang,” are accused of running this fraudulent operation through their businesses, Royal Adult Day Care and Happy Life, as well as a pharmacy owned by Kim. The indictment was unsealed in Brooklyn federal court on Friday, revealing a decade-long conspiracy to commit health care fraud.
Authorities allege that the defendants offered illegal cash incentives and supermarket gift cards to entice elderly individuals into participating in their programs or to obtain prescriptions from Kim’s pharmacy. Court documents highlight text messages between the conspirators discussing the distribution of kickbacks, with one message from Kim stating, “Please give the $10,000 to the Korean members first,” and another from Lee saying, “I gave the payment,” and “I left the envelope [for a patient] with Tony [Kim].”
The investigation, which was prompted by local tips and further scrutiny by New York’s Office of the State Comptroller, revealed that the defendants submitted claims for services that were either unnecessary, not provided, or solicited through bribes. These claims often exceeded the authorized capacity of the centers. As a result, Medicare and Medicaid disbursed approximately $62 million and $58 million, respectively, for these fraudulent services.
Kim, who appeared in court, was released on a $250,000 bond. Lee, however, has been identified as a potential flight risk due to his dual citizenship and history of international travel, raising concerns about pretrial detention. Both men could face up to 10 years in prison if convicted.
Assistant Attorney General A. Tysen Duva of the DOJ Criminal Division underscored the gravity of the charges, stating, “Today’s complaint targets those who prey upon the vulnerable so they can steal from American taxpayers and defraud government programs meant to help the public.” U.S. Attorney Joseph Nocella Jr. echoed this sentiment, emphasizing the commitment to protecting federal programs from theft.
The case is part of a larger effort by the DOJ Fraud Section’s Health Care Fraud Strike Force Program, which has charged over 6,200 defendants since its inception in 2007, recovering billions for federal health care programs. Kim and Lee’s actions not only represent a significant financial loss but also erode public trust in essential health care services for seniors.
As the investigation continues, authorities are urging anyone with additional information or who may be a victim to come forward. The case against Kim and Lee is a stark reminder of the ongoing battle against health care fraud and the importance of vigilance in protecting public funds and the well-being of vulnerable populations.
