Norwalk Physician Pleads Guilty to State Income Tax Fraud
tel 916.845.4800 cell 916.416.3685 John.Barrett@ftb.ca.gov
Public Affairs Office John Barrett
For Immediate Release
Sacramento—A Norwalk physician pleaded guilty to two felony counts of filing false state personal income tax returns and two felony counts of filing false state corporate income tax returns, and his wife pleaded guilty to two felony counts of accessory after the fact, the Franchise Tax Board (FTB) announced.
John Han, 61, and Sonya Han, 55, were arrested in July 2009 by FTB special agents during the execution of a search warrant regarding a Medicare fraud investigation. According to court documents, Han, who owns John S. Han, M.D., Inc. and operates Pain Medical Center in Norwalk, failed to report more than $6.2 million in income he earned during 2001 – 2005. He owes the state more than $1.3 million in unpaid personal income tax and more than $1.1 million in unpaid corporate income tax. Interest, penalties and the cost of the investigation will be added to these amounts.
The Hans’ sentencing and restitution hearing is scheduled for August 25 in Department 121 of the Clara Shortridge Folz Criminal Justice Center. John Han faces up to 270 days in jail plus five years formal probation. Sonya Han faces up to 270 days in county jail. 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 results in quicker investigations and convictions.
Los Angeles County Superior Court Judge Charlaine F. Olmedo accepted the plea Wednesday, June 23, in Department 121. Los Angeles County District Attorney Amy Suehiro prosecuted the case. This was a joint investigation between the District Attorney’s Office, the United States Health and Human Services Office of Inspector General and FTB.
For more information on other taxes and fees in California, visit taxes.ca.gov.
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