February 10, 2026 QUEENS, NY They called it an "empire." To the elderly residents of Flushing, Queens, it looked like a community lifeline—a place for senior citizens to gather, find care, and manage their health. But federal prosecutors say that behind the doors of Royal Adult Day Care Center and Happy Life was a cold, calculated machine designed to strip-mine taxpayer-funded programs for every cent they were worth.

Today, the architects of that machine—Inwoo “Tony” Kim and Daniel Lee—are facing the music after allegedly siphoning a staggering $120 million from Medicare and Medicaid.

The Bait: Cash, Kickbacks, and Grocery Cards

According to the unsealed federal complaint, Kim and Lee didn’t just wait for customers; they bought them. The duo allegedly lured seniors into their web using a "rewards" system that would make a casino blush:

• Illegal cash payments handed out in envelopes.

• Supermarket gift cards used as "sweeteners" for enrolling.

• Kickbacks paid specifically to induce seniors to fill prescriptions at Kim’s pharmacy.

The scheme was as brazen as it was lucrative. In one intercepted text message, Kim allegedly told a co-conspirator, “Please give the $10,000 to the Korean members first.” Another message from Lee (alias "Daniel Yang") simply read: “I left the envelope [for a patient] with Tony.”

The "Ghost" Services: Billed While in the Hospital

The most damning evidence involves the sheer impossibility of the services claimed. Prosecutors allege the centers billed for more seniors than the buildings could legally hold. Even more shocking? Records show the centers billed for "daycare services" for patients who were actually lying in hospital beds at the time.

In reality, the DOJ says the facilities offered almost no actual care. They were little more than staging grounds where members could use basic amenities while the owners "withdrew significant cash" to fund the very bribes that kept the scheme running.

The Real Victims: Taxpayers and Honest Neighbors

While $120 million is a number that’s hard to wrap your head around, the fallout is very real. Assistant Attorney General A. Tysen Duva noted that these schemes "prey upon the vulnerable" and steal from programs meant to serve the public.

But there’s another victim: the local independent pharmacist. Small business owners, like Philip George of Vine Rx, say these headlines make their lives a nightmare. "That’s one of the challenges proper independents face," George says. "They struggle to convince patients that they are better than chains and a credible, fraud-free pharmacy that is there for the community."

Every time a scammer in Queens buys a luxury car with stolen Medicaid money, a local, honest pharmacy has to work twice as hard to earn a neighbor's trust.

What Happens Next?

Both Kim and Lee are charged with conspiracy to commit healthcare fraud. If a jury finds them guilty, the "Empire" builders could be trading their designer suits for prison jumpsuits for up to 10 years.

It’s a stark reminder: if your healthcare provider is handing you an envelope of cash or a "free" grocery card to sign a form, you aren't a customer—you might just be the evidence.