Tattoo removal businessman pleads guilty to million-dollar healthcare fraud

The owner of a tattoo removal business admitted to defrauding Anthem Blue Cross out of more than $1.7 million, after lying about having nine paraplegic employees who required special health benefits.

Joseph Tusia, 60, pleaded guilty in U.S. District Court in Los Angeles last month to tax evasion and healthcare fraud for a four-year scheme he ran out of his South Gate company, Tattoo Removal Inc.

On the surface, Tusia appeared to be running a legitimate business and hiring paraplegic employees to help him conduct it. He had nine paraplegic employees on his payroll, according to documents he submitted to Anthem Blue Cross.

But none of them actually worked for his company, prosecutors said.

The fake employees required durable medical equipment, which they bought from companies controlled by Tusia, according to federal prosecutors. Between 2018 and 2020, Anthem Blue Cross paid out more than $1.7 million to Tusia’s companies that provided the durable medical equipment, according to prosecutors.

On top of that, Tusia failed to report income from his medical equipment companies between 2017 and 2020. He owed the Internal Revenue Service more than $1.5 million.

Tusia is set to be sentenced on Dec. 8 and faces up to 15 years in prison.