FBI Looks for Fraud: New York Has 40% Higher Spending on Medicaid Recipients

FBI New York is expecting to find extensive fraud in the Empire State based on very suspiciously high Medicaid spending. In fact, some senior care centers are already accused of fraud.

Starting in 2019 and going almost to the end of the Biden-Harris administration, Medicaid in New York disbursed “approximately $2.4 billion for Social Adult Day Care (SADC) services intended to support elderly individuals in community settings.” Medicaid spends between 40% and 60% more for each New York enrollee than the national average. Mehmet Oz, administrator for the Centers for Medicare and Medicaid Services (CMS), has already been paying visits to centers committing fraud in New York.

"Ma'am, this is fraud." Dr. Oz confronts a New York City senior day care director during a surprise visit, questioning Medicaid billing records that appear to show more seniors receiving services than are actually present. Dr. Oz presses the director over the discrepancies as federal investigators expand their crackdown on suspected fraud at senior care facilities across the city. The director disputes the concerns, but Oz isn't finished asking questions. See what else investigators uncover during the surprise inspections: https://t.co/XXBgS4qi5W @foxnewspolitics

— Fox News (@FoxNews) October 20, 2026

A state where the likes of Gov. Kathy Hochul (D-N.Y.) and Mayor Zohran Mamdani (D-N.Y.C.) are in charge is bound to have serious problems, with all of their soft-on-crime policies, sanctuary protections for illegal aliens, and deliberate encouragement of socialist abuses.

Related: FTC Chairman: Feds Aim to Seize Half a Minneapolis City Block From Fraudsters

So it is not exactly shocking that Oz and other government officials are now finding mass fraud and waste in New York. James C. Barnacle Jr. (NOT of the Circumlocution Office Barnacles), head of the FBI New York Field Office, announced the interagency partnership to identify and eliminate Medicaid fraud.

He explained, “In response to significant indicators of waste, fraud, and abuse within the social adult daycare sector, the FBI has joined an interagency working group dedicated to immediately disrupting and dismantling billion-dollar healthcare fraud schemes and the money-laundering networks that enable them.”

Barnacle continued, “This coordinated effort will strengthen the integrity of the Medicare and Medicaid programs, and ensure that taxpayer funds are used for legitimate care that truly benefits American citizens.”

The Trump administration has a new program to reward whistleblowers with a one percent commission if they identify substantial fraud. Barnacle encouraged anyone with evidence to come forward. “We need your help to identify, investigate, and prosecute these crimes. If you suspect healthcare fraud, report it to the FBI at tips.fbi.gov or contact your health insurance provider. The message is clear: Those who exploit publicly funded programs for personal gain will be found and held accountable under the law,” he ended.

No doubt the FBI, CMS, and anyone else involved in investigating fraud in New York will be busy for quite a long time. Trying to clean out a state that has had corrupt politics almost since the Revolution will be a Herculean task.

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