Area man indicted on fraud charges A...

Area man indicted on fraud charges

A Huntington Beach man was among 10 indicted last week on federal

charges of fraudulently billing Medicare for more than $24 million in

equipment, according to the Department of Justice.

Seven of the defendants, including Phu Luong, 50, of Huntington

Beach, were arrested and taken into custody, Assistant U.S. Atty.

Jeannie Joseph said.

Luong, who operated United Medical Supply in Huntington Beach, is

charged with 35 counts of healthcare fraud and five counts of money

laundering, Joseph said. The indictment alleges that Luong used

United Medical Supply to fraudulently bill Medicare for liquid

nutrition products and motorized wheelchairs. Medicare did not cover

the beneficiaries of these products because they were not deemed

medically necessary, Joseph said.

The company billed Medicare every month for medical products that

were never delivered to the recipients, Joseph said.

Luong, whom Joseph called the “ringleader” of the operation,

allegedly spent the money on a $185,575 yacht, a $118,000

Rolls-Royce, a $1.7-million down payment on a home in Huntington

Beach, a $170,395 Lamborghini and $120,000 in gambling bills in Las

Vegas.

“He’s looking at some serious jail time,” Joseph said.

The investigation into United’s activities began when Medicare

noticed that United was submitting a high number of claims for liquid

nutrition under two recurring physician’s names. Medicare also

received 363 complaints against United, alleging that the

beneficiaries did not need or did not receive the items billed by

United to Medicare.

Luong and six others appeared in U.S. District Court March 31, and

Luong remains in custody. All 10 will be arraigned April 11.