Department of Justice seal U.S. Department of Justice

Debra W. Yang
United States Attorney
Central District of California

United States Courthouse
312 North Spring Street
Los Angeles, California 90012

March 15, 2005
For Information, Contact Public Affairs
Thom Mrozek (213) 894-6947


Los Angeles, CA - The owner of a Long Beach medical supply business pleaded guilty today to health care fraud for bilking Medicare by billing the federal insurance program for power wheelchairs, hospital beds and other medical equipment that doctors never prescribed and seniors never received.

Atim Okorn, a 49-year-old resident of Chino Hills, who owns Pacific Care Medical Supply, pleaded guilty this afternoon to three counts of health care fraud before United States District Judge Audrey B. Collins.

Okorn was arrested February 2 pursuant to a 50-page criminal complaint that outlined a five-year scheme in which Okorn allegedly defrauded Medicare out of more than $2.4 million. Okorn and his company filed claims with Medicare in which they purported to supply Medicare patients with medical equipment and supplies prescribed by the patients' doctors. In a plea agreement filed on February 25, Okorn admitted he and his company fraudulently received payments of more than $2.4 million from Medicare for equipment and supplies supposedly prescribed by physicians and provided to Medicare beneficiaries. Okorn also admitted that he knowingly possessed blank prescriptions forms, which federal authorities located during a search on January 28, that Okorn used in furtherance of his scheme to defraud Medicare.

Okorn has agreed to forfeit his house, his vehicles and his bank accounts that will be used to reimburse the government for its losses.

The crimes of health care fraud that Okorn pleaded guilty to carry a maximum possible sentence of 30 years in federal prison. Okorn is scheduled to be sentenced by Judge Collins on June 20.

The federal criminal investigation began as a result of an audit conducted by CIGNA, the government contractor that administers Medicare's payments in connection with the provision of prescription medical equipment.

The case against Okorn is the result of an investigation by the United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, and the Federal Bureau of Investigation.


Release No. 05-045

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