Independent journalist Nick Shirley has once again done what the legacy media refuses to do. He went out, found the fraud, and showed the country exactly how organized criminal networks are draining hundreds of millions of taxpayer dollars out of the Medicaid system in New York City. This time the story centers on Flushing, Queens,

Independent journalist Nick Shirley has once again done what the legacy media refuses to do. He went out, found the fraud, and showed the country exactly how organized criminal networks are draining hundreds of millions of taxpayer dollars out of the Medicaid system in New York City.
This time the story centers on Flushing, Queens, a neighborhood packed with so-called social adult daycare centers that Shirley and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz say have become a playground for organized Korean and Chinese crime rings.
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Shirley released a nearly hour-long documentary on July 10 detailing what he says is more than 190 million dollars in fraudulent billing tied to adult daycares and their affiliated pharmacies. He later appeared on Fox News to lay it all out for a national audience, telling host Laura Ingraham that the scheme runs on kickbacks. Seniors are recruited into these daycare centers, their Medicaid beneficiary numbers are billed for services that were never provided, and the operators turn around and hand out cash to keep the scam rolling.
“In Queens, adult daycares have pharmacies set up; it’s this big racket where they bill all these people with medical beneficiary numbers from seniors in the adult daycares,” Shirley told Ingraham.
He explained that the operators make so much money from Medicaid billing that they can afford to pay referral bonuses, describing a setup where bringing a friend into the program earns a senior an extra hundred dollars.
Shirley did not mince words about who he believes is behind the operation. “Korean and Chinese mafias, quite literally,” are looting the government through Medicaid and funneling kickbacks to the very seniors enrolled in the program, he said. It is the kind of blunt, unapologetic reporting that has made Shirley a household name among Americans who are sick and tired of watching their tax dollars disappear into schemes nobody in Washington seems interested in stopping.
Dr. Oz did not sit on the sidelines. The Medicaid czar joined Shirley on the ground in Flushing, walking the streets and confronting operators directly.
In one exchange caught on camera, Oz and Shirley found more than a dozen pharmacies packed onto a single block, a density that Oz said would be considered abnormal anywhere else in the country unless there was a cash cow business model driving it.
The two men visited one center under the pretense that Shirley wanted to enroll his grandmother. An employee at the facility told him bluntly that only Koreans were welcome there because English speakers would not get along with the other members. Shirley talked his way in anyway, and once inside, the numbers he found were staggering.
At one facility, Shirley says public billing documents show the center claiming nearly 7,900 members. When he confronted an employee about it, the man denied the facility had anywhere close to 7,000 members enrolled, even as the paperwork said otherwise.
Centers like this one bill roughly 1,600 dollars per patient, which means a discrepancy of that size translates into millions of dollars in potential overbilling every single year.
Dr. Oz has publicly stated that Flushing has become an epicenter for this kind of fraud, noting that social adult daycares in Queens alone generated an estimated 2.1 billion dollars over the past three years. That is billions of dollars flowing through a system that was designed to help vulnerable seniors, not to enrich organized crime networks hiding behind the cover of ping pong tables and tai chi classes.
This is not an isolated case, either. Federal prosecutors have already brought charges tied to this exact type of scheme. One case detailed how two individuals identified as Kim and Yang paid illegal bribes in cash and supermarket gift certificates to Medicaid and Medicare beneficiaries between 2016 and 2026 to induce them to fill prescriptions at a specific pharmacy. In total, prosecutors say Medicare and Medicaid paid out approximately 120 million dollars for drugs and daycare services that were either medically unnecessary, never provided, or the product of straight-up kickbacks.
New York state officials, for their part, claim they have not been sitting on their hands. The state Department of Health has referred 387 adult daycare centers for investigation since 2021, with roughly a third of those cases escalated to the state attorney general for potential law enforcement action.
That is a lot of centers under a cloud of suspicion, and it raises an obvious question conservatives have been asking for years. If hundreds of centers already needed investigating, how much taxpayer money slipped through the cracks before anyone bothered to look?
Shirley is no stranger to this kind of work. He went viral last year after exposing what he described as a network of fraudulent businesses tied to Somali community leaders in Minnesota, a story that similarly involved daycare fraud draining state assistance programs.
That investigation eventually led to federal charges and shined a spotlight on how weak oversight allows organized fraud rings to flourish inside government assistance programs.
This past week, Shirley took his findings straight to the United States Senate. He testified before the Senate Homeland Security and Governmental Affairs Committee, walking lawmakers through his investigations into Medicaid, daycare services, and hospice care fraud across multiple states. His message to the committee was simple and direct. This is not a partisan issue. It is money stolen from hardworking, taxpaying Americans, plain and simple.
“When we talk about fraud, we are talking about money that is being stolen from hardworking, law-abiding, taxpaying citizens,” Shirley told the senators. It is hard to argue with that framing, and it is exactly the kind of accountability moment that conservatives have demanded from Washington for years while entrenched bureaucrats looked the other way.