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Medicaid fraud expected to rise with Obamacare

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NEW YORK (MYFOXNY) -

The Brooklyn District Attorney's Office is prosecuting defendants who are accused of cheating Medicaid and living large.

The Oceana luxury complex in Brighton Beach boasts oceanfront views, indoor and outdoor pools, private grounds, and gated security. The condos go for up to $2 million. It is also the home to an alarming number of alleged Medicaid cheaters.

Kristina Zelinsky, 34, became the sixth resident since 2011 charged with Medicaid fraud in what prosecutors say is a growing trend. Zelinsky was indicted for allegedly scamming more than $25,000 from the taxpayer-funded health care system designed to help the needy. Prosecutors say that during the decade she claimed to be destitute, she got an $850,000 mortgage for an Oceana condo, owned three cars, and was known for her expensive taste in designer clothes.

Fraud on the rise

Prosecutors say that, unfortunately, it has gotten easier to scam the system since January 2010 when the administration eliminated the requirement that Medicaid applicants disclose their resources.

Zelinsky's Oceana neighbors made headlines as the "Medicaid millionaires" when they were arrested. And there could be more.

Law enforcement sources told me they're bracing for a spike in scamming when Obamacare goes into effect because those applying for Medicaid and other types of welfare benefits will no longer have to do so in person. It will all be done online.

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