Corporate Compliance

Federal authorities indict 10 in alleged $24 million fraud ring

Compliance Monitor, April 6, 2005

Ten people in Southern California have been indicted in a $24 million Medicare fraud case that alleges improper billings for power wheelchairs and nutritional supplements that were unnecessary or never received, the San Jose Mercury News reported April 2.

According to the report, federal authorities are alleging that the owner of a Huntington Beach medical supplier, Phu Tan Luong, submitted fraudulent Medicare bills and used the proceeds to buy expensive cars and boats, and pay off a $120,000 casino tab. Two physicians were also indicted for their roles in the alleged scheme, which involved writing the bogus prescriptions that led to more than $24 million in false claims, the Mercury News reported.

Several of Luong's employees were also indicted on charges that they recruited elderly Vietnamese patients and drove them to the physicians' offices, setting up the fraudulent billing. This group also has been accused of intimidating seniors into accepting nutritional supplements they didn't want, the Mercury News reported.

Most Popular