The owner of a tattoo removal company has admitted to defrauding Anthem Blue Cross of more than $1.7 million after lying about having nine paraplegic employees who needed special health benefits.
Joseph Tusia, 60, pleaded guilty last month in U.S. District Court in Los Angeles to tax evasion and health care fraud stemming from a four-year scheme he ran from his South Gate business, Tattoo Removal Inc.
At first glance, Tusia appeared to be running a legitimate business and hiring paraplegic employees to help him run it. He had nine paraplegic 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 needed durable medical equipment, which they purchased from companies controlled by Tusia, according to federal prosecutors. Between 2018 and 2020, Anthem Blue Cross paid more than $1.7 million to Tusia’s companies that provided the durable medical equipment, according to prosecutors.
On top of that, Tusia failed to report income from his medical equipment 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.
