Posted on 03/31/2005 9:10:17 PM PST by NormsRevenge
SANTA ANA, Calif. (AP) - A federal grand jury has indicted 10 people on fraud charges for an alleged scheme in which false bills were submitted to Medicare and a portion of the proceeds were used to buy a Rolls-Royce, a yacht and to pay gambling bills in Las Vegas.
Federal agents arrested seven of the 10 defendants Thursday, including the operator of a Huntington Beach medical supply firm, the U.S. Attorney's Office office said.
Three others named in the indictment, which was issued Wednesday, will receive a summons to appear in court in coming weeks, authorities said. Those indicted include two doctors.
All 10 are charged with 35 counts of health care fraud. Phu Luong, 50, who ran United Medical Supply in Huntington Beach, was indicted on an additional five counts of money laundering.
Luong allegedly used the money to buy a yacht for more than $185,000; a Rolls-Royce for $118,000; a $1.7 million down payment on a home in Huntington Beach; a $170,395 Lamborghini; and to pay $120,000 in gambling bills, the indictment claims.
In the alleged scheme, people would be recruited from the local Vietnamese and Korean communities for medical examinations with the two doctors, who prescribed nutrition products and motorized wheelchairs that weren't needed and, in most cases, never provided.
The indictment alleges that participants billed Medicare for $24 million in equipment and nutrition products and that Medicare paid about $14 million in claims.
Maybe they can get Sandy Burg[l]er's lawyer...
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