Kathy Hochul has garnered attention for her campaign finances, with records revealing $55,000 in contributions from social adult daycare centers in Flushing, Queens—an area beset by fraud investigations.
The source of nearly half of these funds can be traced to two influential local figures: Baoli Zhang and Jiemin Shang. Both men own major daycare operations in Flushing that appeared devoid of patients during a recent visit by The Post.
Baoli Zhang, aged 69, has contributed a total of $15,000. This includes a personal donation of $10,000 and an additional $5,000 through his business, Bao Kang Adult Day Care, according to financial disclosures. Since 2018, Zhang’s network of enterprises has reportedly secured a minimum of $32 million from Medicaid to support a vast number of patients.
Jiemin Shang, who oversees Livingwell Day Care, donated $5,000 to Hochul’s campaign in 2022, coinciding with a year when the daycare billed Medicaid $5.8 million. Another $5,000 came from Finest Adult Day Care, also managed by Shang.
In the backdrop of these donations, a source from within the industry spoke to The Post about the economic revival of social adult daycare centers, saying, “In 2021, [these centers] were on the brink of collapse due to COVID. Someone threw them a lifeline with a likely quid pro quo: ‘Support me, and I’ll support you.’ Now, they’re flourishing financially.”
Federal figures back this up. Business has exploded at Livingwell, which billed $114,000 in 2018, a number that increased to $8.05 million in 2024. Boa Kang went from claiming $1.5M in 2018 to 7.22M by 2024. Monthly revenue for daycares across Flushing overall has nearly doubled compared to pre-pandemic numbers.
Only nine of the city’s nearly 400 SADCs made contributions over $5,000 to Hochul’s first gubernatorial campaign in 2022. Those same nine businesses accounted for billing Medicaid for an eyepopping $49 million in 2022, The Post’s investigation found.
Zhang is also founder of the Asian American Adult Daycare Association (AAADA), a nonprofit formed in 2023 as an industry advocacy group, while Shang is secretary-general.
Zhang, who grew up in Beijing, is a big name in the community as he is also a world-renowned musician, described as a “master” of the erhu—a two-stringed Chinese musical instrument played with a bow—performing at Carnegie Hall, Lincoln Center and The Julliard School, according to Chinese media.
Zhang was a child prodigy, entering a prestigious Beijing music conservatory at age nine. Before long, he was selling CDs and cassettes of his solo erhu performances to audiences across Asia and the US.
However, in recent years, he has concentrated on growing his SADC businesses.
His involvement is opaque. While he listed himself as the owner and manager of Bao Kang on campaign finance disclosure records, both local and federal Medicaid data list other individuals as the owners.
Zhang also owns Confucius Social Daycare Center in Manhattan’s Chinatown, which billed Medicaid $15.7 million between 2018 and 2024; Silver Arch Management and AA Plus Management Inc. The latter is a “point of service” Medicaid provider that has billed taxpayers $2.65 million, according to federal data.
The SADCs in this story have not been accused of wrongdoing, nor have Zhang or Shang — who did not respond to The Post’s numerous attempts at outreach for comment.
According to a 2022 Chinese language news report on the topic of recent fraud busts in Flushing, Zhang warned at an event against greed and “excessive consumption” within the community.
He said, in statements translated from Chinese: “The New York State government is very generous to its residents. Whether it’s home care, daycare, or medical assistance, it is one of the states with the best welfare in the United States.
“The elderly should cherish their current benefits and living environment; excessive consumption will only deprive their descendants of resources.”
The same Baxter Street building in Manhattan’sChinatown which Zhang lists as his business address is home to another SADC which donated to Hochul’s campaign, Cathay Adult Daycare, which sent the governor $5,000 in 2022 — the same year it billed Medicaid for $8.4 million.
Zhang is not listed as the owner of Cathay Adult Daycare and it’s unclear if he is connected to it.
The Post’s previous reporting and federal raids have shown SADCs have become epicenters for Medicaid fraud, claiming money for seniors they are not treating and in some cases giving them kickbacks of the federal money they receive.
This has happened in a number of communities, including among Coney Island’s Pakistani diaspora as well as Chinatown in Manhattan and Flushing, where 77 centers are packed into the district.
The New York State Department of Health told CBS News it has referred 387 SADCs for investigation since 2021, a third of which were then sent to the of the Attorney General for legal action.
The 2022 event where Zhang spoke was also attended by US congresswoman Grace Meng (D) of Flushing and state senator John Liu (D), Chairperson of New York City Education Committee.
Liu told The Post in a statement: “Mr. Zhang is a longtime respected leader in the community, and I am proud to have had his support for decades.
“I have made visits to several adult daycare centers in past years, each time seeing large numbers of senior citizens engaged in services and activities. If fraud and impropriety are suspected at any facilities, full investigations and prosecutions should be undertaken.”
Zhang has donated $7,800 to Meng and $4,950 to Liu, according to campaign disclosures.
The source said local politicians find the centers handy to pick up votes.
“A lot of the local politicians are using these guys,” a source who has spent decades around the daycare industry in Flushing told The Post.
“If you get 100 people in there and you make them vote, it’s very powerful for a primary. Every politician goes to these daycares for help.”
The Empire SADC which hosted the event where the politicians spoke is another which Zhang claimed to own on campaign finance forms, and was credited as his operation in local reports, however city and federal data lists two other owners.
The other daycares to contribute to Hochul’s campaign in 2022 were: American Adult Daycare Center, Big Apple Adult Daycare, Blue Sky Adult Daycare, Greater New York Social and Health Adult Daycare — all in Flushing — and Brooklyn’s Jy Adult Social Daycare, which each cut $5,000 checks.
A spokesperson for Gov. Hochul said: “Governor Hochul has taken significant action to root out waste, fraud and abuse, resulting in billions of dollars in savings for taxpayers, reforms to New York’s Medicaid program, and the criminal prosecution of fraudsters.Any facility caught breaking the law will be held accountable.”
The spokesperson also noted: “Political contributions have no influence on government decisions.”