SAN FRANCISCO – Haichao Huang was sentenced to 12 months in prison for committing health care fraud and making false statements relating to health care matters, announced United States Attorney David L. Anderson, Office of Personnel Management Office of the Inspector General Deputy Assistant Inspector General for Investigations Thomas W. South, and U.S. Department of Labor Office of Inspector General Special Agent-in-Charge Quentin Heiden. The Honorable Susan Illston, United States District Judge, handed down the sentence.

Huang, 46, of San Francisco, Calif., pleaded guilty on December 6, 2019, to health care fraud and making false statement relating to health care matters.

According to the plea agreement, Huang was a health care provider who offered acupuncture, physical therapy, massage, and other services to patients in and around San Francisco, Calif. Beginning no later than February 2013 and continuing through at least June 2018, Huang knowingly and willfully executed a scheme to defraud healthcare benefit programs. Huang submitted and caused to be submitted false claims for reimbursement from health care benefit programs that he knew were not properly payable, including from programs provided through federal government and labor union healthcare plans. Huang included false and inaccurate billing codes that artificially inflated both the type of service the patient received and the time he spent with the patient. The plea agreement gives examples of the ways in which Huang submitted false and inaccurate billings for reimbursement. Huang submitted requests for reimbursement for acupuncture treatment when, in fact, the patient had received much shorter periods of treatment, no acupuncture treatment, or no care of any kind at all. Huang also submitted claims for services rendered on days when patients had not been seen by him at all—including days when Huang was not in California. Further, after a patient reached the limit of acupuncture sessions allowed by the relevant insurance program or plan, Huang falsely and inaccurately billed for other types of treatments and services that were not provided, or billed under a patient’s family member’s health plan who never received treatment through his practice, in order to continue receiving improper reimbursements.

In addition to the prison term, Judge Illston ordered Huang to serve two years of supervised release to begin after his prison term has concluded and to pay restitution of $807,785.38 and a $10,000 fine. 

Huang had been released on a $100,000 bond, which remains in place until he surrenders to begin serving his prison term on or before May 29, 2020.

Assistant U.S. Attorneys Lina Peng and Ross Weingarten prosecuted the case with the assistance of Marina Ponomarchuk and Morgan Bryne. This prosecution is the result of investigations by the Office of Personnel Management Office of Inspector General and the Department of Labor Office of Inspector General, with assistance from the San Mateo County District Attorney’s Office-Bureau of Investigation.   

SAN FRANCISCO – Haichao Huang pleaded guilty today to health care fraud and making false statements relating to health care matters, announced United States Attorney David L. Anderson, Office of Personnel Management Office of the Inspector General Deputy Assistant Inspector General for Investigations Thomas W. South, and U.S. Department of Labor Office of Inspector General Special Agent-in-Charge Quentin Heiden. The guilty plea was accepted by the Honorable Susan Illston, United States District Judge. 

“Haichao Huang stole money set aside for union members’ health benefit plans by fraudulently billing union trust funds for acupuncture services not performed. The U.S. Department of Labor Office of Inspector General will continue to work with our law enforcement partners to safeguard the union benefit funds from those who seek to exploit it for personal gain,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.       

According to the plea agreement, Huang, 46, of San Francisco, was a health care provider who offered acupuncture, physical therapy, massage, and other services to patients in and around San Francisco, Calif. Beginning no later than February 2013 and continuing through at least June 2018, Huang knowingly and willfully executed a scheme to defraud healthcare benefit programs. Huang submitted and caused to be submitted false claims for reimbursement from health care benefit programs that he knew were not properly payable, including from programs provided through federal government and labor union healthcare plans. Huang included false and inaccurate billing codes that artificially inflated both the type of service the patient received and the time he spent with the patient. The plea agreement gives examples of the ways in which Huang submitted false and inaccurate billings for reimbursement. Huang submitted requests for reimbursement for acupuncture treatment when, in fact, the patient had received much shorter periods of treatment, no acupuncture treatment, or no care of any kind at all. Huang also submitted claims for services rendered on days when patients had not been seen by him at all—including days when Huang was not in California. Further, after a patient reached the limit of acupuncture sessions allowed by the relevant insurance program or plan, Huang falsely and inaccurately billed for other types of treatments and services that were not provided, or billed under a patient’s family member’s health plan who never received treatment through his practice, in order to continue receiving improper reimbursements. 

On March 7, 2019, a federal grand jury indicted Huang with six counts of health care fraud, in violation of 18 U.S.C. § 1347, and one count of false statement relating to health care matters, in violation of 18 U.S.C. § 1035(a)(2). Huang pleaded guilty to all seven counts.  

Pursuant to the terms of his plea agreement, Huang has agreed to pay restitution in an amount to be set by the court at the time of sentencing, but in no event less than $807,785.38. Judge Illston scheduled the sentencing hearing for March 13, 2020. In addition to restitution, the defendant faces a maximum statutory sentence of 10 years in prison and $250,000 for each violation of 18 U.S.C. § 1347. Further, the defendant faces up to five years in prison and a fine of $250,000 for the violation of 18 U.S.C. § 1035(a)(2). The court also may order additional fines and additional periods of supervised release at sentencing. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

Assistant U.S. Attorneys Lina Peng and Ross Weingarten are prosecuting the case with the assistance of Marina Ponomarchuk and Lenora Hamilton. This prosecution is the result of investigations by the Office of Personnel Management Office of Inspector General and the Department of Labor Office of Inspector General, with assistance from the San Mateo County District Attorney’s Office Bureau of Investigation.

 

SAN FRANCISCO– A federal grand jury has indicted Haichao Huang, charging him with health care fraud and making false statements relating to health care matters, announced United States Attorney David L. Anderson, Office of Personnel Management Office of the Inspector General Deputy Assistant Inspector General for Investigations Thomas W. South, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Abel Salinas.

According to the indictment, filed March 7, 2019, and unsealed today, from February 2013 through June 2018, Huang, 46, of San Francisco, was a health care provider who offered acupuncture, physical therapy, massage, and other services at his office in San Francisco.  The indictment alleges that Huang submitted claims for reimbursement to his patients’ health insurance plans, claiming that he provided reimbursable services and treatments when, in fact, he knew that the billings were false and not properly reimbursable.  The indictment gives three examples of the ways in which Huang allegedly submitted billings for reimbursement.  First, Huang submitted requests for reimbursement for acupuncture and other treatments when, in fact, the patient had received either much shorter periods of treatment or no treatment at all.  Second, after a patient reached the limit of acupuncture sessions allowed by the relevant insurance plan, Huang billed the plan for other types of treatments and services that were not provided in order to continue receiving improper reimbursements.  Third, Huang submitted claims for services rendered on days when the patient beneficiaries were not seen and received no services at all—including days when Huang was not in California.  

Huang is charged with six counts of health care fraud, in violation of 18 U.S.C. § 1347, and one count of false statement relating to health care matters, in violation of 18 U.S.C. § 1035(a)(2).  

An indictment merely alleges that crimes have been committed, and Huang, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison and $250,000 for each violation of 18 U.S.C. § 371.  The defendant faces five years in prison and a fine of $250,000 if convicted of the violation of 18 U.S.C. § 1035(a)(2).  The court may also order additional fines, restitution, and additional periods of supervised release at sentencing.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

Huang made an initial appearance today before U.S. Magistrate Judge Joseph C. Spero.  Huang pleaded not guilty and was released on bond.  Judge Spero scheduled Huang’s next court appearance for March 12, 2019, for a further bond hearing.  Huang’s first appearance before a district court judge is scheduled for March 22, 2019, before the Hon. Susan Illston, U.S. District Judge.

Assistant U.S. Attorney Ross Weingarten is prosecuting the case with the assistance of Marina Ponomarchuk.  This prosecution is the result of investigations by the Office of Personnel Management Office of Inspector General and the Department of Labor Office of Inspector General, with assistance from the San Mateo County District Attorney’s Office.