Woman Pleads Guilty to Nearly $1 Million Hearing Aid Fraud Scheme

SAN DIEGO – Julianna C. Lung pleaded guilty in federal court today to health care fraud, admitting she marketed and sold hearing protection devices to United States Border Patrol agents, other federal employees, and their family members, then falsely billed insurance providers for what she claimed were medically-necessary hearing aids.

According to her plea agreement, Lung submitted approximately 385 fraudulent claims to health insurance plans participating in the Federal Employees Health Benefits (FEHB) program. The claims falsely represented that beneficiaries suffered from hearing loss or tinnitus that required treatment.

In reality, Lung told customers the devices were intended to protect their hearing—not treat a medical condition—and assured them their insurance would cover the cost for that purpose.

As a result of the scheme, FEHB plans paid approximately $2,500 per device, totaling about $962,500 in fraudulent reimbursements.

Lung is scheduled to be sentenced on September 11, 2026, at 9 a.m., before U.S. District Judge Robert S. Huie.

The case is being prosecuted by Assistant U.S. Attorney George Manahan of the U.S. Attorney’s Office in the Southern District of California.   

DEFENDANT                                               Case Number 26cr2399-RSH                                   

Julianna C. Lung                                             Age: 60                                   San Diego, California

SUMMARY OF CHARGES

Health Care Fraud—Title 18, U.S.C. Section 1347

Maximum penalty: Five years in prison and $250,000 fine 

INVESTIGATING AGENCY

U.S. Office of Personnel Management, Office of the Inspector General

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.