LOS ANGELES—The owner of a tattoo removal business in South Gate is scheduled to be sentenced Dec. 5 for his guilty plea to federal criminal charges for recruiting paraplegics in a health care fraud scheme that netted more than $1.7 million and for cheating on his taxes.
Joseph Tusia, 60, of Leominster, Massachusetts, entered his plea in downtown Los Angeles Aug. 5 to health care fraud and tax evasion, according to the U.S. Attorney’s Office.
Tusia will face up to 15 years in federal prison at the sentencing hearing conducted by U.S. District Judge George Wu, prosecutors said.
Tusia operated the laser tattoo removal business and 10 durable medical equipment supply companies in California, Nevada and Massachusetts, according to prosecutors. He controlled the tattoo removal companies and the medical equipment supply companies (DMEs), but intentionally withheld his name from bank accounts and state registrations to evade tax liability, papers filed in L.A. federal court show.
On Dec. 30, 2015, Tusia and an associate submitted an application to Anthem Blue Cross for a small group health insurance plan, prosecutors said.
Anthem’s small group plan permitted benefits and health coverage for permanent employees who worked full-time. Despite the eligibility requirements, Tusia submitted to Anthem the names of nine individuals purported to be full-time employees of Tattoo Removal and a person who was a dependent of Tusia, according to prosecutors.
None of these purported employees were employed by Tattoo Removal or eligible for health insurance coverage under Tattoo Removal’s health plan, prosecutors said.
From March 2016 to June 2020, Tusia and his associates submitted false claims to Anthem on behalf of the DMEs for medical supplies provided to the purported employees, knowing that none of them were eligible for coverage, prosecutors said. As a result, Anthem paid the DMEs controlled by Tusia over $1.7 million.
Tusia also admitted to failing to report income he received from the DMEs in 2017 through 2020, totaling more than $1.5 million.
Tusia admitted that he failed to pay tax to the IRS and that he took steps to evade paying taxes, such as by creating the DMEs and opening bank accounts for the DMEs in the names of his associates and co-schemers, according to the U.S. Attorney’s Office.