A Staten Island mother and daughter face charges in a Medicaid fraud case involving more than $530,000 in payments prosecutors say their adult day care center received for services never provided.
Yangsim Oum, 79, owned SI Day Care Center Inc., while her daughter, Juyoung Choe, 49, served as program director. The business operated on Forest Avenue in Staten Island’s Mariners Harbor neighborhood.
Richmond County District Attorney Michael E. McMahon announced the arrests on October 21, 2026, calling the investigation “Operation Golden Grift.” Both women were taken into custody the previous day and have denied wrongdoing.
Medicaid Claims Named Seniors Who Were Dead or Overseas
Prosecutors allege that from April 17 through August 25, 2026, the center received money through Medicaid-related managed long-term-care arrangements for services that hundreds of older adults had not received.
At least 32 people named in the records were either deceased or outside the United States when the center supposedly provided care, according to Qiaobao’s coverage of the district attorney’s announcement.
About $13,000 in disputed claims involved those 32 individuals. That amount was only a portion of the broader allegations, rather than the source of the entire $530,000 figure.
A 457-Count Indictment Includes Hundreds of Records Charges
Public records from the New York State Unified Court System identify Oum as defendant IND-70673-26/001 and Choe as defendant IND-70673-26/002 in Richmond Supreme Criminal Court.
Both court listings identify second-degree health care fraud under New York Penal Law 177.20 as the top charge. They also list first-degree falsifying business records and fourth- and fifth-degree health care fraud charges.
The defendant-specific listings show 374 first-degree business-records counts for Oum and 373 for Choe, alongside additional health care fraud charges.
Second-degree health care fraud is a Class C felony carrying a maximum sentence of 15 years in prison upon conviction.
Prosecutors Say Some Seniors Received Legitimate Care
McMahon acknowledged that the Staten Island center had also provided services to older adults who actually attended. The allegations concern payments for claimed services prosecutors say were not delivered, not every person enrolled at the business.
According to the New York Post, officials said they would work with the state Department of Health to help affected participants find other providers so legitimate care could continue.
Social adult day care programs provide nonmedical daytime support, meals and activities for older adults who need assistance while remaining in their communities. Some participants receive services through Medicaid managed long-term-care plans.
Attendance and Service Records Are Central to Medicaid Oversight
Under a September 2025 Department of Health policy, managed long-term-care plans must review social adult day care attendance records that identify participants, service dates, and arrival and departure times.
Plans must also review records documenting services delivered to enrolled members, assess individualized care plans and verify that centers operate within approved occupancy limits. These requirements provide ways to compare billed services with actual attendance.
More Than 100 Day Care Providers Faced Wider Scrutiny
The Staten Island arrests coincided with a wider October 20 enforcement operation involving facilities in Brooklyn and Queens. Gothamist reported that investigators interviewed personnel at 20 centers and sent letters to another 80.
State officials said the broader inquiry involved more than 100 providers suspected of potential fraud or illegal activity. Those investigative steps do not establish that every facility examined committed a crime.
New York Is Reviewing the Future of the Program
An announcement distributed by the state Medicaid Inspector General’s office said more than 400 social adult day care programs serve approximately 45,000 Medicaid members statewide, at an estimated annual cost exceeding $500 million.
Gov. Kathy Hochul directed agencies to strengthen oversight, including closer reviews of claims before payment and suspensions where appropriate. A moratorium on new providers, introduced in July 2026, runs through January 2027 and may be extended.
The Department of Health is also reviewing whether the benefit should be reformed or replaced with other services. Recommendations are due by December 31, 2026; no final decision to eliminate the program has been announced.
Both Defendants Are Due Back in Court December 3
The public appearance records list Oum’s arraignment before Judge Raymond Rodriguez on October 20 at 9 a.m. and Choe’s later that day at 2:30 p.m. Both defendants pleaded not guilty, and Choe’s appearance entry records her release on her own recognizance. CBS New York reported that both women were released without bail.
Both defendant records schedule their next appearance for December 3 at 10 a.m. in Richmond Supreme Criminal Court, Part 7, before Judge Rodriguez.
Attorney Yan Katsnelson told CBS New York that Oum denied wrongdoing and was having accountants examine the records. The outlet identified Mark Fonte as Choe’s attorney and reported that he also rejected the allegations and had retained forensic accounting assistance.
Neither woman has been convicted in this case. They are presumed innocent unless proven guilty.
How Families Can Check Suspicious Adult Day Care Billing
Families whose relatives receive Medicaid-funded adult day care can keep records of the days their relatives attended and ask their managed long-term-care plan to review services attributed to a provider.
Dates when a participant was hospitalized, traveling or otherwise absent are worth examining if the plan’s records indicate day care services were delivered. Families can preserve calendars, provider communications and relevant statements to document possible discrepancies.
Suspected improper billing can be reported through the New York State Office of the Medicaid Inspector General’s fraud form or by calling 877-873-7283. Anonymous reports are accepted, and details such as the provider’s name, dates of service and relevant records can help investigators review a complaint.
