Kathy Hochul’s campaign records indicate she received a total of $55,000 in contributions from the Social Adult Day Care Center (SADC) in Flushing, Queens, an area notorious for fraudulent activities.
Almost half of these funds appear to be connected to two influential local figures, Baoli Zhang and Jieming Xiang. They run some of the largest daycare facilities in Flushing, yet when the Post paid a visit last week, no patients were visible in either of their establishments.
Zhang, 69, personally contributed $10,000 and an additional $5,000 through his Bao Kang Adult Day Care. Financial reports show that his businesses have billed Medicaid over $32 million for thousands of patients since 2018.
As it stands, Mr. Shang manages Living Well Day Care, which charged Medicaid $5.8 million in 2022—the same year Shang donated $5,000 to Hochul. Another $5,000 came from Finest Adult Day Care, another facility under his ownership.
Industry insiders have speculated that post-pandemic, these centers have been thriving: “In 2021, a lot of these centers suffered, but now they’re in a better place than ever,” some claimed. And this aligns with federal data showing a spike in business for Living Well, with claims escalating from $114,000 in 2018 to an anticipated $8.05 million in 2024. Similarly, Bao Khanh’s billing jumped from $1.5 million in 2018 to $7.22 million by 2024. Overall, day care revenues in Flushing have nearly doubled compared to pre-pandemic figures.
Interestingly, only nine out of the city’s roughly 400 SADCs contributed more than $5,000 to Hochul during her 2022 election campaign. These nine centers collectively billed an astounding $49 million to Medicaid, according to a Post investigation.
During a visit to Living Well, the Post found it completely deserted, despite the facility having billed Medicaid a total of $27 million from 2018 to 2024.
Zhang is associated with the Asian American Adult Childcare Association (AAADA), a non-profit he helped establish in 2023, where Mr. Shang serves as Executive Director.
Aside from his business endeavors, Zhang is also an internationally acclaimed musician known for his mastery of the erhu, a traditional Chinese instrument. He has performed at venues such as Carnegie Hall and Lincoln Center.
However, his role within these day care facilities raises questions. While he lists himself as the owner of Bao Khanh on campaign finance disclosures, Medicaid data identifies other individuals in ownership roles.
In addition, Zhang owns Confucius Social Child Care in Manhattan’s Chinatown, which billed $15.7 million from 2018 to 2024. His various ventures, including Silver Arch Management, have charged taxpayers significantly, with federal data revealing a charge of $2.65 million for Medicaid services.
Despite not being accused of any wrongdoing, the SADC mentioned has raised eyebrows, and attempts by the Post to reach Zhang and Shang for comments have been unsuccessful.
A 2022 report also captured Zhang cautioning against greed within the community, emphasizing the importance of valuing welfare services provided by the New York state government.
Among the political figures involved, U.S. Representative Grace Meng, who received contributions from Zhang, expressed a willingness for thorough investigations while acknowledging the challenges faced by Asian Americans.
Interestingly, the same building where Zhang lists his work address is home to another SADC, Cathay Adult Day Care, which also contributed to Hochul’s campaign.
Reports have highlighted SADC’s involvement in Medicaid fraud, billing for services not rendered and even distributing kickbacks. With 77 centers in Flushing alone, the area faces scrutiny for possible widespread fraud.
The New York State Department of Health reported referring 387 SADCs for investigation, with a significant portion sent for legal action.
State Senator John Liu remarked on past visits to various adult daycare centers where he observed seniors actively participating in services. He stressed the need for accountability if any wrongdoing is suspected.
Concerns have also been raised about how local politicians may leverage these centers for votes, highlighting the intertwining of politics and community services.
In summary, while Hochul’s spokesperson maintains that political contributions don’t sway government decisions, the recent scrutiny has raised serious questions about transparency and accountability across these facilities.
