Buena Park Physician, Wife Held to Answer on Grand Theft, State Income Tax Charges
Sacramento – A Buena Park physician and his wife were held to answer on three counts of grand theft and nine counts of state income tax fraud charges, the Franchise Tax Board (FTB) reported
John S. Han, 61, and Sonya Han, 55, were arrested earlier this year 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 FTB.
According to court documents, Han owns John S. Han, M.D., Inc. and operates Pain Medical Center in Norwalk. During 2001 2005, Han received more than $10 million in Medicare and Medi-Cal payments. Han allegedly filed false corporate income tax returns on behalf of John S. Han, MD, Inc. for the same years and underreported the corporation´s income by more than $484,000. The Hans also allegedly underreported the gross income on their 2002 2005 personal income tax returns by more than $6.2 million. The couple owes the state more than $1.3 million in unpaid personal income tax, penalties, interest, and the cost of the investigation, and more than $1.1 million in unpaid corporate income tax, penalties, interest, and the cost of the investigation.
Each felony tax count carries a maximum term of three years in state prison.
This case is another in 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 the suspects involved in health care provider fraud are either non-filers or grossly under report their incomes. Using FTB´s tax charges results in quicker investigations and convictions.
Los Angeles Superior Court Judge Samuel Mayerson presided over yesterday´s court hearing in Department 44 of the Clara Shortridge Folz Criminal Justice Center. Los Angeles County Deputy District Attorney Alan Fork is prosecuting the case.