Kathy Hochul obtained $55,000 in marketing campaign contributions from social grownup daycare facilities (SADCs) in fraud-plagued Flushing, Queens, data present.
Nearly half of these donations could be linked to 2 males: native powerbroker Baoli Zhang, and Jiemin Shang — who personal two of Flushing’s largest daycare companies, each of which had been empty of sufferers when visited by The Submit final week.
Zhang, 69, personally donated $10,000, in addition to one other $5,000 by his Bao Kang Grownup Day Care, monetary disclosures present. Zhang’s varied companies have claimed at the very least $32 million from Medicaid since 2018, on behalf of tens of 1000’s of sufferers.
Shang runs Livingwell Day Care, which donated $5,000 to Hochul in 2022, the identical yr it billed $5.8M to Medicaid. One other $5,000 got here from Most interesting Grownup Day Care, which Shang additionally runs.
“In 2021, [social adult daycare centers] had been dying because of COVID. Somebody threw them a lifeline and will need to have stated one thing like, ‘Deal with me, I’ll handle you.’ They’re making more cash than ever now,” an trade supply claimed to The Submit.
Federal figures again this up. Enterprise has exploded at Livingwell, which billed $114,000 in 2018, a quantity that elevated to $8.05 million in 2024. Bao Kang went from claiming $1.5M in 2018 to $7.22M by 2024. Month-to-month income for daycares throughout Flushing general has practically doubled in comparison with pre-pandemic numbers.
Solely 9 of town’s practically 400 SADCs made contributions over $5,000 to Hochul’s first gubernatorial marketing campaign in 2022. Those self same 9 companies accounted for billing Medicaid for an eyepopping $49 million in 2022, The Submit’s investigation discovered.
Zhang can also be founding father of the Asian American Grownup Daycare Affiliation (AAADA), a nonprofit fashioned in 2023 as an trade advocacy group, whereas Shang is secretary-general.
Zhang, who grew up in Beijing, is a giant identify in the neighborhood as he’s additionally a world-renowned musician, described as a “grasp” of the erhu—a two-stringed Chinese language musical instrument performed with a bow—acting at Carnegie Corridor, Lincoln Heart and The Jiulliard College, in accordance with Chinese language media.
Zhang was a baby prodigy, getting into a prestigious Beijing music conservatory at age 9. Earlier than lengthy, he was promoting CDs and cassettes of his solo erhu performances to audiences throughout Asia and the US.
Nonetheless, lately, he has focused on rising his SADC companies.
His involvement is opaque. Whereas he listed himself because the proprietor and supervisor of Bao Kang on marketing campaign finance disclosure data, each native and federal Medicaid knowledge listing different people because the homeowners.
Zhang additionally owns Confucius Social Daycare Heart in Manhattan’s Chinatown, which billed Medicaid $15.7 million between 2018 and 2024; Silver Arch Administration and AA Plus Administration Inc. The latter is a “level of service” Medicaid supplier that has billed taxpayers $2.65 million, in accordance with federal knowledge.
The SADCs on this story haven’t been accused of wrongdoing, nor have Zhang or Shang — who didn’t reply to The Submit’s quite a few makes an attempt at outreach for remark.
In accordance with a 2022 Chinese language language information report on the subject of current fraud busts in Flushing, Zhang warned at an occasion towards greed and “extreme consumption” inside the group.
He stated, in statements translated from Chinese language: “The New York State authorities could be very beneficiant to its residents. Whether or not it’s house care, daycare, or medical help, it is without doubt one of the states with the perfect welfare in the US.
“The aged ought to cherish their present advantages and residing atmosphere; extreme consumption will solely deprive their descendants of assets.”
The identical Baxter Avenue constructing in Manhattan’sChinatown which Zhang lists as his enterprise handle is house to a different SADC which donated to Hochul’s marketing campaign, Cathay Grownup Daycare, which despatched the governor $5,000 in 2022 — the identical yr it billed Medicaid for $8.4 million.
Zhang is just not listed because the proprietor of Cathay Grownup Daycare and it’s unclear if he’s linked to it.
The Submit’s earlier reporting and federal raids have proven SADCs have change into epicenters for Medicaid fraud, claiming cash for seniors they don’t seem to be treating and in some circumstances giving them kickbacks of the federal cash they obtain.
This has occurred in quite a few communities, together with amongst Coney Island’s Pakistani diaspora in addition to Chinatown in Manhattan and Flushing, the place 77 facilities are packed into the district.
The New York State Division of Well being instructed CBS Information it has referred 387 SADCs for investigation since 2021, a 3rd of which had been then despatched to the of the Lawyer Common for authorized motion.
The 2022 occasion the place Zhang spoke was additionally attended by US congresswoman Grace Meng (D) of Flushing and state senator John Liu (D), Chairperson of New York Metropolis Schooling Committee.
Liu instructed The Submit in a press release: “Mr. Zhang is a longtime revered chief in the neighborhood, and I’m proud to have had his assist for many years.
“I’ve made visits to a number of grownup daycare facilities in previous years, every time seeing massive numbers of senior residents engaged in providers and actions. If fraud and impropriety are suspected at any amenities, full investigations and prosecutions needs to be undertaken.”
Zhang has donated $7,800 to Meng and $4,950 to Liu, in accordance with marketing campaign disclosures.
The supply stated native politicians discover the facilities helpful to select up votes.
“Quite a lot of the native politicians are utilizing these guys,” a supply who has spent many years across the daycare trade in Flushing instructed The Submit.
“Should you get 100 folks in there and also you make them vote, it’s very highly effective for a main. Each politician goes to those daycares for assist.”
The Empire SADC which hosted the occasion the place the politicians spoke is one other which Zhang claimed to personal on marketing campaign finance kinds, and was credited as his operation in native studies, nevertheless metropolis and federal knowledge lists two different homeowners.
The opposite daycares to contribute to Hochul’s marketing campaign in 2022 had been: American Grownup Daycare Heart, Huge Apple Grownup Daycare, Blue Sky Grownup Daycare, Better New York Social and Well being Grownup Daycare — all in Flushing — and Brooklyn’s Jy Grownup Social Daycare, which every lower $5,000 checks.
A spokesperson for Gov. Hochul stated: “Governor Hochul has taken important motion to root out waste, fraud and abuse, leading to billions of {dollars} in financial savings for taxpayers, reforms to New York’s Medicaid program, and the legal prosecution of fraudsters.Any facility caught breaking the regulation shall be held accountable.”
The spokesperson additionally famous: “Political contributions haven’t any affect on authorities choices.”
