Investigators from the Office of the Medicaid Inspector General (OMIG) identified potential fraud leading to the indictment of Kristina Zelinsky, 34, by the Kings County District Attorney, for fraudulently collecting more than $25,000 in Medicaid benefits since 2003.  This indictment was part of a collaboration between the Brooklyn DA and the New York City Human Resources Administration (HRA).

Zelinsky has been charged with Welfare Fraud in the Third Degree, Grand Larceny in the Third Degree, and Offering a False Instrument for Filing in the First Degree.  She allegedly lied about her income and assets to obtain Medicaid benefits.  OMIG’s work uncovered the facts that the defendant lived in a high rise luxury beachfront apartment, had multiple expensive vehicles, took expensive vacations, and shopped at high-end stores.

“When a person such as Ms. Zelinsky lives in luxury and owns vehicles that most people only see in movies, New York State taxpayers should not finance her health care,” said James C. Cox, Medicaid Inspector General.  “This indictment should serve as a warning for others who are involved in—or considering—schemed that defraud the Medicaid system, to reconsider their actions.  This collaboration between the Brooklyn DA’s Office, OMIG, and the New York City HRA clearly demonstrates that people who commit these offenses will be identified and that they stand to lose their assets as well as risk spending time in jail for such abuses of the Medicaid program.”

According to the indictment, the defendant filed her initial Medicaid application in 2003, claiming she had no income independent of her husband, who made $22,000 annually.  On the basis of that information, the New York City HRA, which administers Medicaid in New York City, enrolled Zelinsky in the state’s Family Health Plus Medicaid benefits program in 2003, for her and her husband, as well as their two children.  She continued to file disclosures through 2013, listing income amounts that maintained her eligibility for Medicaid benefits. 

Property records obtained during the investigation indicate that the defendant purchased a penthouse apartment in 2007 with a mortgage of $850,000 at the Oceana Condominium Complex in Brighton Beach.  This luxury building development advertises apartments for sale for as much as $2 million.  OMIG investigators also found luxury vehicles belonging to the defendant—including a $195,000 Aston-Martin.

The investigation also uncovered several personal bank accounts in the defendant’s name, as well as an account in the name of her business, Kristy Billing and Collection.  According to the indictment, annual deposits to the defendant’s personal accounts from 2008-10 far exceeded the maximum amount allowed for individuals receiving Family Health Plus Medicaid.  Zelinsky used these funds to furnish a lavish lifestyle, including running up bills at several Las Vegas hotels and restaurants.

If convicted of the top count of Welfare Fraud in the Third Degree, Zelinsky faces up to seven years in prison. 

An indictment is an accusatory instrument and is not proof of a defendant’s guilt.

New Yorkers can assist the Office of the Medicaid Inspector General in fighting fraud, waste, and abuse by reporting potentially suspicious behavior or incidents. OMIG encourages anyone who observes instances of potential Medicaid fraud, waste, or abuse to contact OMIG’s fraud hotline at 1-877-87-FRAUD or visit the Web site at www.omig.ny.gov. Tips can be completely anonymous, and OMIG investigates information from all calls. #NYFightsFraud.

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Our mission is to enhance the integrity of the New York State Medicaid program by preventing and detecting fraudulent, abusive, and wasteful practices in the Medicaid program and recovering improperly expended Medicaid funds while promoting high-quality patient care.