A San Diego clinic operator has been accused of turning regular medical billing into a multimillion-dollar cash machine, according to authorities. A two-year investigation discovered a vast fraud that billed Medicare and private insurers for needless or never-performed treatments.
The defendant has been named as Kim Huynh, and she was detained last Wednesday. According to authorities, Huynh was charged with healthcare fraud, money laundering, and practicing medicine without a license, and the clinic was closed as part of the enforcement operation. According to investigators, more than $11 million in claims were submitted, with over $10 million billed to Medicare and more than $4.6 million paid out. Bail was set at $750,000, with a bail review hearing scheduled for Wednesday, March 18.
According to a news release from the San Diego County District Attorney, a collaborative investigation by the DA’s Office, the FBI, and the Department of Health and Human Services Office of Inspector General tracked the clinic’s operations and records, revealing the billing pattern.
According to the announcement, the clinic submitted more than $11 million in total claims, including over $10 million to Medicare. Private insurers were charged more than $600,000 and paid more than $100,000, according to prosecutors. Investigators further claim that clinic workers performed quantitative EEG, or qEEG, scans without the necessary licenses for that type of neurodiagnostic testing.
According to the statement, when people “steal millions of dollars from our healthcare system, it diverts critical resources away from patients who truly need care and undermines public trust,” according to the San Diego County District Attorney.
According to the announcement, HHS-OIG Robb R. Breeden stated that his agency will continue to cooperate with law enforcement partners to hold individuals who abuse vulnerable beneficiaries accountable, while FBI Special Agent T. J. Holland described the alleged conduct as abhorrent.
Prosecutors filed a charge alleging that a man named Iman Shirali presented himself to patients as a physician despite having no medical training or certification. Shirali died, according to the announcement, but it is not clear whether his death was related to the alleged fraud.
According to authorities, the scheme involved charging for neurodiagnostic tests and other services that were either conducted or recorded by unlicensed personnel and then filed as claims to Medicare and commercial insurers.
Huynh was detained on March 11 and pleaded not guilty last Friday, according to court documents quoted in the announcement. Deputy District Attorney Jonathan Fraenkel has been tasked with prosecuting the case.
According to the district attorney’s office, Huynh may face up to 14 years in prison if convicted of all charges. Bail remains $750,000, and the next court appearance is a bail-review hearing scheduled for Wednesday.
Recently, federal and state agencies have increased their crackdowns on fraudulent clinics and fake billing networks, initiating countrywide operations that have charged hundreds of defendants and alleged billions of dollars in false claims, according to the Department of Justice.
Public records connect the business involved in this case to Tubi Connect Inc., which is listed in the National Provider Identifier registration as operating under the name White Ink Clinic, with Kim Huynh listed as an authorized official. These federal provider records link the operation to addresses in La Jolla and San Diego, and the NPI record can be accessed through the provider’s register listing.
The March 18 bail-review hearing will determine whether Huynh’s release terms change as prosecutors prepare their case. Subsequent court filings and agency reports are expected to reveal more facts as the prosecution progresses.
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