Four indicted for alleged fraudulent Medicare scam

Bay City News Service

March 1, 2006

Recently released documents from a San Francisco grand jury indictment against four people involved in an alleged Medicare fraud scheme show the defendants reportedly charged over $1 million for services that were never performed or properly ordered.

San Francisco resident Daisy Cruz, 50, Glendale resident Harut Korakossian, 52, Camarillo resident Wilson Fung, 44, and Whittier resident Edward Ridgill, 53, operated the alleged fraudulent clinic inside the headquarters of the nonprofit West Bay Pilipino Multi-Service Center, the U.S. Attorney's Office reported.

According to the indictment, the four defendants filed fraudulent claims with Medicare for physician services worth $488,375.

In addition, several prescriptions that were provided by the clinic listed false physician information. The prescriptions reportedly stated that Fung was the attending physician, though he reportedly did not examine the beneficiaries, order diagnostic tests or order durable medical equipment, the office reported.

Ridgill is alleged to have fraudulently signed numerous orders, diagnoses and prescriptions used to bill Medicare. Unneeded medical equipment ordered by Ridgill included power wheelchairs and electric beds, according to the office.

Korakossian, who reportedly set up and operated the shoddy clinic, was arraigned on the indictment on Wednesday. Ridgill and Fung are scheduled to appear in court on March 8 for their arraignment, the office reported.

Cruz is believed to be in the Philippines.

The four are charged with one count of conspiracy to commit health care fraud, while Korakossian and Fung are also charged with 11 counts of health care fraud, the office reported. Each count carries with it a 10-year prison sentence, $250,000 fine and three-year probation term.

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