Pervez Siddiqui, a 78-year-old Pakistani-American businessman and member of Brooklyn Community Board 13, was arrested Monday on federal charges alleging he orchestrated a $38 million Medicaid fraud scheme through two social adult day care (SADC) centers in Brooklyn.
Background
The alleged scheme operated from 2019 through December 2025, funneling millions in fraudulent Medicaid claims through APNA Adult Daycare and Ashiana Social Adult Daycare, both located in Coney Island. Federal prosecutors allege the operation recruited seniors—often targeting low-income residents in NYCHA housing, at bus stops, and in doctors' offices—to enroll in day care services they rarely or never actually attended.
"Marketers are going around looking for the Medicaid card. They stop people on the street, at bus stops. They go into doctors' offices. They go into NYCHA where they know people are low-income. They ask, 'Do you have a Medicaid card?'" a source with knowledge of the investigation told the New York Post.
The indictment alleges that enrolled seniors or their family members received $500 monthly kickbacks in exchange for handing over their Medicaid cards—even when enrollees were not physically present in the United States. Sources claimed many participants had relocated to countries like Pakistan or Morocco while still collecting payments.
Siddiqui, who owns approximately 15 pharmacies in New Jersey, cultivated extensive political connections through his affiliation with the American Pakistani Public Affairs Committee (APPAC), hosting fundraisers for prominent Democrats including New York Attorney General Letitia James in June 2022. Through this group, he secured an intimate meeting with New York City Mayor-elect Zohran Mamdani in December 2025.
The Charges
Siddiqui and seven co-conspirators—Shazia Bibi (also known as Shazia Wattoo), Abdul Aziz, Shair Ali, Zebun Ahmed, Josna Begum, Saira Khatoon, and Atia Shahnaz—were charged in a federal indictment unsealed following the arrests. The charges include conspiracy to commit health care fraud, health care fraud, and money laundering.
According to the indictment, conspirators paid cash bribes directly to New York Medicaid recipients for enrollment at APNA or Ashiana while paying recruiters kickbacks to refer patients. They allegedly submitted $38 million in fraudulent claims to New York Medicaid for services never provided.
To conceal the fraud, investigators allege the operation created fake sign-in sheets far exceeding APNA's certificate of occupancy on certain days, employed Pakistan-based billing staff, and laundered proceeds through shell companies by writing checks disguised as "gifts," "dividends," or coded entries like "medicine" or "laddu"—an Indian word for sweets.
Federal prosecutors allege that after a December 2025 federal search warrant was executed, Bibi, Siddiqui, and Ali attempted to cover their tracks by instructing staff to obtain new phones and delete data.
"The patient is in Pakistan, they're in Morocco. They're not even in this country," the source claimed regarding enrollees receiving kickback payments while abroad.
Key Takeaways
- Siddiqui, a Brooklyn Community Board 13 member, allegedly ran the $38M fraud scheme through APNA Adult Daycare and Ashiana Social Adult Daycare from 2019-2025
- Eight defendants were charged with conspiracy to commit health care fraud, health care fraud, and money laundering
- Seniors reportedly received $500 monthly kickbacks for Medicaid cards while often not attending the facilities—or even being in the country
- The operation used Pakistan-based billing staff and laundered proceeds through shell companies with coded entries
- Siddiqui is a major Democratic donor who hosted a fundraiser for NY AG Letitia James and met with Mayor-elect Mamdani
What's Next
Siddiqui and his co-defendants are awaiting arraignment in federal court. The indictment does not mention pharmacies or other businesses affiliated with Siddiqui, who resides in New Jersey but owns extensive property in Brooklyn. Federal law enforcement declined to comment, citing the ongoing investigation.
APNA Community Services, a nonprofit affiliate also led by Siddiqui that received a $530,000 federal grant backed by Senators Chuck Schumer and Kirsten Gillibrand, was not named in the indictment.