Pakistani-American Community Leaders Among Eight Charged in Alleged $38 Million Medicaid Fraud Scheme
By Asim Siddiqui
NEW YORK: A federal indictment alleging a $38 million Medicaid fraud scheme involving two adult day care centers in Brooklyn has received widespread coverage across major U.S. and international media outlets, including the New York Post, The Economic Times, Times of India, as well as numerous television networks, online news platforms, and social media.
According to the unsealed federal indictment, eight individuals, including prominent Pakistani-American businessman and community leader Pervez Siddiqui, have been charged in connection with an alleged scheme that operated from 2019 through December 2025 through APNA Adult Daycare and Ashiana Adult Day Care.
Federal prosecutors allege that Medicaid recipients were offered monthly cash kickbacks—reportedly up to $500 per month—to enroll in the centers, even though many allegedly rarely or never attended. Authorities claim that millions of dollars in fraudulent Medicaid claims were submitted for services that were never provided.
The defendants named in the indictment are Pervez Siddiqui, Shazia Bibi (also known as Shazia Wattoo), Abdul Aziz, Shair Ali, Zebun Ahmed, Josna Begum, Saira Khatoon, and Atia Shahnaz.
According to prosecutors, the defendants allegedly created fake attendance records, used Pakistan-based billing personnel, and laundered proceeds through shell companies using descriptions such as “gifts,” “dividends,” “medicine,” and “laddu” to disguise financial transactions. Investigators also allege that after federal search warrants were executed in December 2025, some defendants instructed employees to replace mobile phones and delete electronic records.
The indictment further alleges that recruiters targeted low-income Medicaid recipients at bus stops, public housing complexes, and doctors’ offices, offering cash payments in exchange for the use of their Medicaid benefits. Authorities also allege that some beneficiaries continued generating Medicaid claims while living outside the United States, including in Pakistan and Morocco.
Pervez Siddiqui, 78, is a member of Brooklyn Community Board 13 and reportedly owns approximately 15 pharmacies in New Jersey. Through the American Pakistani Public Affairs Committee (APPAC), he developed relationships with several Democratic Party leaders and hosted a fundraiser for New York Attorney General Letitia James in 2022.
Media reports also note that New York City Mayor Zohran Mamdani met with members of APPAC following his election victory and publicly acknowledged the organization’s voter outreach efforts. Reports further state that APNA Community Services, a nonprofit organization separate from the adult day care operation and not named in the federal indictment, lists Siddiqui as its board chairman. The nonprofit has also received public support from elected officials, including a $530,000 federal grant backed by U.S. Senators Chuck Schumer and Kirsten Gillibrand.
The federal indictment does not accuse APNA Community Services of criminal wrongdoing, nor does it implicate several individuals associated with the nonprofit, including attorney Ali Najmi and co-founder Erum Hanif, who are not charged in the case.
Federal law enforcement officials have declined further comment, citing the ongoing investigation, while APNA Community Services has also declined to comment publicly.
The charges remain allegations only. Under the U.S. legal system, all defendants are presumed innocent unless and until proven guilty in a court of law.
Media References
New York Post
The Economic Times
Times of India
Multiple U.S. television and digital news outlets
Extensive coverage across social media platforms
