Medicaid Fraud Allegations Against Pakistani-American Businessman
A well-known Pakistani-American businessman has been implicated in a $38 million Medicaid fraud scheme. Pervez Siddiqui, aged 78, who is also a civic leader and an involved member of Brooklyn Community Board 13, was arrested recently alongside seven others.
The group is accused of orchestrating a large kickback and false claims scheme through two Social Adult Day Care (SADC) centers in Brooklyn: APNA Adult Day Care and Asiana Social Adult Day Care. Federal officials claim this operation lasted from 2019 to December 2025, misleadingly enrolling seniors who rarely or never attended the facilities and pocketing part of their Medicaid payments.
A source familiar with the investigation shared that marketers actively sought out Medicaid recipients on the streets, including at bus stops and clinics, often targeting low-income individuals. They would ask, “Do you have a Medicaid card?”
Siddiqui, who owns around 15 pharmacies in New Jersey, has a history of political contributions, often donating sums exceeding $10,000 to local candidates. His connections reportedly enabled him to meet New York City Mayor-elect Zoran Mamdani in December 2025, as depicted in some photos.
Others involved in the alleged scheme include Shazia Bibi, Abdul Aziz, Shaia Ali, and their co-defendants. An unsealed indictment describes how they allegedly paid cash bribes directly to Medicaid recipients for enrollment, as well as kickbacks to recruiters who referred patients, many of whom had never attended the centers. The group reportedly submitted fraudulent claims totaling $38 million for services that were never rendered.
To cover their activities, they are said to have fabricated sign-in sheets and utilized billing agents based in Pakistan, laundering funds through shell companies labeled as “gifts,” “dividends,” or even “medicine” and “laddu,” which is a type of Indian sweet.
Siddiqui, who is the board president of a nonprofit known as APNA Community Services, serves a different purpose than the daycare but is still closely tied to the ongoing controversy. APNA Community Services shares leadership with the daycare. Earlier this year, the organization received a $530,000 federal grant with backing from prominent Democratic Senators.
Following a federal search warrant executed in December 2025, Siddiqui and others allegedly instructed employees to obtain new phones and erase their digital traces.
The marketers mentioned are said to manage groups of 30 to 50 patients, utilizing cultural connections to attract clientele. Siddiqui’s connections, particularly with the American Pakistan Public Affairs Committee (APPAC), have helped him gain significant access to Democratic leaders in New York. For instance, he hosted a fundraiser for Attorney General Letitia James in June 2022.
Concerns about the daycare system in New York are growing. Medicaid reimbursement for managed long-term care is typically capped at $6,000 monthly, with daycares often part of broader fraud schemes involving pharmacies and other services utilizing shared Medicaid numbers for kickbacks.
The indictment highlights staggering instances of fraud, indicating that even people who weren’t in the country received kickbacks. Many were reportedly living abroad while their families collected this illicit money. For example, some patients were identified as being in places like Pakistan or Morocco.
Shazia Bibi was notably recognized by the Bay Democratic Party in 2022, shortly after Siddiqui made a significant donation to their organization. In her testimonies, Bibi has referred to herself as a community activist, stressing the challenges faced by Pakistani-Americans. Yet, her background as described by sources paints a different picture, labeling her as street-smart but lacking formal education.
Interestingly, there’s no mention of the pharmacies or other businesses connected to Siddiqui in the indictment. It’s suspected that Siddiqui used his nonprofit ties to deflect suspicion regarding any illegal conduct.
While investigators have not commented on the ongoing nature of the case, APNA has chosen to remain silent, along with Siddiqui and his co-defendants. The Medicaid fraud landscape in New York is complex, riddled with loopholes that allow these operations to continue unabated, raising serious questions about the systems meant to oversee them.
