Posted on: February 09, 2026 11:00 AM

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DOJ investigation continues in Flushing involving day care centers

Today, the Dept of Justice charged two people in Flushing for day care and pharmacy fraud on Medicare and Medicaid.

This is from the Justice Dept.

On Friday, a complaint was unsealed in Brooklyn charging two Queens men with defrauding Medicare and Medicaid by paying illegal kickbacks and bribes and submitting claims for services that were never provided.

According to the complaint, Inwoo Kim, also known as “Tony Kim” and “Long Jin,” 42, of Flushing, owned a pharmacy and two social adult day care centers — Z & W Empire Enterprise Inc. doing business as Royal Adult Daycare (Royal) and Happy Life Inc. (Happy Life). Daniel Lee, also known as “Daniel Yang” and “Donghee Yang,” 56, of Flushing, served as the program director at Happy Life. Between 2016 and 2026, Kim and Yang paid illegal bribes in the form of cash and supermarket gift certificates to Medicaid recipients and Medicare beneficiaries to induce them to fill prescriptions at Kim’s pharmacy.

The defendants also allegedly paid illegal cash kickbacks to Medicaid recipients to induce them to enroll with Kim’s social adult day cares. According to the complaint, Kim discussed the illegal payments by text message, writing to a co-conspirator, “Please give the $10,000 to the Korean members first.” Yang similarly texted about the payments, writing to a co-conspirator, “I gave the payment,” and “I left the envelope [for a patient] with Tony [Kim].” At times, Kim and Yang allegedly submitted claims for day care services that exceeded Royal and Happy Life’s permitted capacity. To generate the cash needed to pay kickbacks and bribes, Kim and Yang withdrew significant cash from bank accounts they controlled. In total, Medicare and Medicaid paid approximately $120 million for prescription drugs and social adult day care services that were medically unnecessary, not provided, or induced by kickbacks and bribes. Law enforcement executed numerous search warrants and seized several bank accounts in connection with the arrests.

Kim and Yang are both charged with conspiracy to commit health care fraud. If convicted, they face a maximum penalty of 10 years in prison.