Norwalk Physician Pays Big for State Income Tax Fraud Conviction
A Norwalk physician and his wife, who pleaded guilty to felony counts of filing false state income tax returns, were sentenced to five years probation and ordered to pay us $2.7 million in restitution.
According to court documents, during 2001 – 2007, John Han, 63, received more than $14 million in Medicare and Medi-Cal payments. Han and Sonya Han, 58, underreported the income on their 2002 – 2007 personal income tax returns by more than $5 million. Han also filed false returns for his corporation, John S. Han, MD, Inc., for the same years and underreported the corporation’s income by more than $7 million.
John S. Han and Sonya Han were arrested in early 2009 during the execution of a search warrant related to a joint criminal investigation between the Los Angeles County District Attorney’s Office (LADA), United States Department of Health and Human Services, Office of the Inspector General (DHHS OIG), and us.
The $514,000 in cash seized during the search warrant, plus an additional $248,000 frozen in his bank account will be used to reduce the amount of restitution ordered.
This is another prosecution by the Los Angeles County District Attorney’s Fraud Interdiction Program. The program is a unique program designed to more effectively deal with the crisis of health care fraud. A large percentage of suspects involved in health care provider fraud are either non-filers or grossly under reporting their income. Using FTB’s tax charges resulted in quicker investigations and convictions.
Los Angeles County Superior Court Judge Alex Ricciardulli handed down the sentence Wednesday, March 16, at the Clara Shortridge Folz Criminal Justice Center in Department 121.
Los Angeles County District Attorney Amy Suehiro prosecuted the case. This was a joint investigation between the District Attorney’s Office, DHHS OIG, and FTB.