Man jailed for healthcare scam

A Huntington Beach man has been convicted on 35 counts of federal healthcare fraud and five counts of money laundering for his participation in a Medicare scam.

Phu Luong, 51, who operated United Medical Supply on Main Street in Huntington Beach, was found guilty April 6 after a three-week trial in the United States District Court in Santa Ana. He had been charged with unlawfully billing Medicare for more than $24 million worth of nutrition products and motorized wheelchairs that were not necessary and many times not delivered.

Medicare paid about $15 million of the $24 million in fraudulent claims submitted.

According to prosecutors, Luong used the money he made through the fraud to pay for a $185,575 yacht, a $118,000 Rolls-Royce, a $1.7-million down payment on a Huntington Beach home, a $170,395 Lamborghini and accumulate $120,000 in gambling debts from the Bellagio Hotel & Casino in Las Vegas.

Three other people were also convicted for their roles in the scam. Long Beach resident Sareth Tath, 56, Luong’s business partner, was convicted of persuading doctors to write fraudulent prescriptions. Also convicted were two company employees, Mo Thi Pham, 50, of Westminster and Peter Kim of Los Angeles.

During the trial, it was found that the defendants unlawfully recruited doctors Derrick Hubbard, who fled to South Africa after his indictment, and Matthew Khatibloo, who fled to Iran, to write prescriptions for unnecessary motorized wheelchairs and enteral nutrition ? liquid nutrition that is covered only if the patient is being tube-fed.

Luong and the others convicted Thursday are scheduled for sentencing July 10. Each faces a maximum of 10 years in prison for each count of healthcare fraud and money laundering.