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Press Release

Owner Of Rehabilitation Facility Pleads Guilty To Mail Fraud Charge

For Immediate Release
U.S. Attorney's Office, Central District of California

SANTA ANA, California – The owner and chief executive officer of a comprehensive outpatient rehabilitation facility pleaded guilty today to mail fraud for submitting claims to Medicare for services that were not prescribed by treating doctors.

Tuan Duc Tran, 53, of Westminster, pleaded guilty before United States District Judge Josephine Staton Tucker.

This case involves Medicare billings by Fountain Valley Healthcare Center (FVHC), a rehabilitation facility that Tran operated. Tran admitted that he submitted bills to Medicare based on false claims that Medicare beneficiaries had been referred to FVHC for physical and respiratory therapy. These claims for payment violated Medicare rules because, as Tran acknowledged, the treating doctors had not referred the beneficiaries for rehabilitation.

Pursuant to a plea agreement, Tran will be required to pay $777,291 in restitution to Medicare.

Judge Tucker scheduled Tran’s sentencing for November 8.

The mail fraud count carries a maximum statutory sentence of 20 years in federal prison.

Release No. 13-089

Updated June 22, 2015