# Law enforcement investigations in New York and New Jersey

> Live situation record from CLSTR: https://clstr.news/situations/law-enforcement-investigations-in-new-york-and-new-jersey
> Updated: 2026-10-20T09:18:26.000Z. Sources: 22. Developments: 2.

Law enforcement agencies in the New York and New Jersey area have conducted several investigations into illegal activities. 

In New Jersey, authorities searched Waterfall Therapy in Mays Landing, recovering approximately $10,000 in cash. Jianhong Li, 54, was arrested and charged with promoting prostitution following the search. 

In Suffolk County, New York, James Seccadanari was arrested and charged with felony third-degree promoting prostitution. Prosecutors allege he recruited women for commercial sex work through sexual classified advertisements. The MacArthur Inn, where the alleged activity took place, had previously closed due to code violations.

On October 20, 2026, federal and state agencies conducted coordinated raids on more than 100 adult daycare providers across Brooklyn, Queens, and Staten Island as part of a Medicaid fraud investigation. The probe targets suspected money laundering, illegal kickbacks, and improper billing, including claims for services never provided or for deceased individuals. In Staten Island, two operators from SI Day Care Center, Inc. were arrested and charged with 457 counts for allegedly bilking Medicaid of $530,000.

In response, New York Governor Kathy Hochul has directed the Department of Health to consider ending the state’s $500 million Medicaid social adult day care benefit to address waste and abuse. The Centers for Medicare and Medicaid Services (CMS) issued a compliance warning, noting that New York’s per capita spending for adult daycare is 40% to 60% higher than the national average.

## Claims

- Federal and state law enforcement raided more than 100 adult daycare providers in New York on Tuesday. (corroborated by 20 sources)
- The investigation targets Medicaid fraud involving money laundering, kickbacks, and improper billing. (corroborated by 12 sources)
- Raids took place in Brooklyn, Queens, and Staten Island. (corroborated by 11 sources)
- There are more than 400 adult daycare programs serving 45,000 Medicaid members in New York state. (corroborated by 5 sources)
- Dr. Mehmet Oz visited senior care centers in Flushing, Queens, to investigate suspicious billing practices. (corroborated by 4 sources)
- Governor Hochul directed the Department of Health to consider ending the state's Medicaid social adult day care benefit. (corroborated by 3 sources)
- New York facilities accounted for 17% of the $3.35 billion in national Medicaid adult daycare payments in 2024. (corroborated by 2 sources)
- Two Staten Island operators were arrested and charged with 457 counts for allegedly bilking Medicaid of $530,000. (corroborated by 2 sources)
- Per capita Medicaid spending for adult daycare in New York is 40% to 60% higher than the national average. (single source)
- Dr. Mehmet Oz suggested a ‘Chinese mafia’ could be involved in the suspected Medicaid fraud. (single source)

## Timeline

### 2026-10-20: New York adult daycare centers raided in massive Medicaid fraud probe

Federal and state authorities raided over 100 adult daycare centers in NYC as part of a sweeping Medicaid fraud investigation into kickbacks and improper billing.

21 sources. https://clstr.news/cluster/federal-agents-raid-new-york-city-adult-day-cares-in-medicaid-fraud-probe

### 2026-10-19: Law enforcement officials arrest individuals in separate prostitution investigations

Authorities in New Jersey and New York have arrested individuals in separate cases involving the promotion of prostitution at a massage therapy business and a former motel.

2 sources. https://clstr.news/cluster/law-enforcement-officials-arrest-individuals-in-separate-prostitution-investigations

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Cite as: Law enforcement investigations in New York and New Jersey. CLSTR, https://clstr.news/situations/law-enforcement-investigations-in-new-york-and-new-jersey