The owner of a tattoo removal business admitted to defrauding Anthem Blue Cross of more than $1.7 million after lying about having nine paraplegic employees who required special health benefits.
Joseph Tusia, 60, pleaded guilty in U.S. District Court in Los Angeles last month to tax evasion and health care fraud for a four-year scheme he ran out of his South Gate business, Tattoo Removal Inc.
On the surface, Tusia appeared to be running a legitimate business and hiring paraplegic employees to help him run it. He had nine paralyzed employees on his payroll, according to documents he filed with Anthem Blue Cross.
But none of them actually worked for his company, prosecutors said.
The fake employees demanded durable medical equipment, which they bought from companies controlled by Tusia, according to federal prosecutors. Between 2018 and 2020, Anthem Blue Cross paid out more than $1.7 million to Tusia’s company that provided the durable medical equipment, according to prosecutors.
On top of that, Tusia failed to report income from his medical device companies between 2017 and 2020. He owed the Internal Revenue Service more than $1.5 million.
Tusia will be sentenced on December 8 and faces up to 15 years in prison.