A federal court in Brooklyn, New York, has sentenced a 55-year-old Bangladeshi day-care owner to 76 months in prison for Medicaid fraud and illegal healthcare payments.

Zakia Khan was also ordered to repay more than $56 million and forfeit another $5 million, according to the US Attorney’s Office for the Eastern District of New York.

Time TV USA reported the information, citing the prosecutor’s office website, which states, “Earlier today, in federal court in Brooklyn, Zakia Khan was sentenced by United States District Judge Natasha C. Merle to 76 months in prison in connection with her leadership role in carrying out a $64 million Medicaid fraud and illegal kickback scheme at her two social adult daycare centers and a home health care company.”

According to the US Attorney’s Office, in August 2025, Zakia pleaded guilty to conspiracy to commit healthcare fraud and conspiracy to defraud the United States and pay illegal healthcare kickbacks.

Court documents show that Zakia owned Happy Family Social Adult Day Care Center and Family Social Adult Day Care Center. She also owned a home healthcare company called Responsible Care Staffing and used another company, Tanwi Services, to conceal and transfer proceeds from the fraud.

From October 2017 to July 2024, Medicaid beneficiaries were enrolled at the two day-care centres through various intermediaries. According to the allegations, they were given cash and other benefits to sign false attendance records.

The centres then submitted bills to Medicaid for services that had not actually been provided.

Between 2017 and 2024, the two day-care centres submitted nearly $64 million in fraudulent claims to Medicaid. Medicaid paid approximately $56 million of those claims.

Investigators said the proceeds from the fraud were moved through various companies and converted into cash, with part of the money used for bribes and illegal payments.

During the investigation, cash, jewellery and two properties linked to the proceeds of the fraud were seized from Zakia’s home.

Under the court’s order, up to $5 million in money and assets will be forfeited.

The case was investigated by the Office of Inspector General of the US Department of Health and Human Services, Homeland Security Investigations and the New York Police Department.