Christian Eunsung Chung, a chiropractor in Orange and Los Angeles counties, was the co-mastermind of a massage parlor scheme that stole more than $1.7 million from the U.S. Treasury through false Medicare claims and today he can give back rubs for free to his cellmate.
Federal prosecutors inside the Ronald Reagan Federal Courthouse in Santa Ana won guilty verdicts in July against Chung and co-conspirator Ku Il Lee, a fellow chiropractor.
According to an indictment, Chung and Lee devised a scheme beginning in about 2006 that mostly lured members of the Korean community to their shops for massages, acupuncture and meals, and then manipulated Medicare by systematically falsifying documents about non-existent medical examinations and treatments.
This week, U.S. District Court Judge Cormac J. Carney sentenced Chung to an 87-month prison trip, ordered him to pay restitution of more than $1,488,000 and placed him in the custody of federal marshals.
There is no indication yet in the record about Lee's punishment.
After the guilty verdicts, both defendants asked for a new trial or acquittals by claiming there is a lack of evidence they were aware of the criminal operations in their shops. Federal prosecutors, however, reported that Chung and Lee (born in 1962 and 1972, respectively) devised a formula to cheat, controlled all the employees and received the bulk of the stolen funds.
R. Scott Moxley’s award-winning investigative journalism has touched nerves for two decades. An angry congressman threatened to break Moxley’s knee caps. A dirty sheriff promised his critical reporting was irrelevant and then landed in prison. Corporate crooks won’t take his calls. Murderous gangsters mad-dogged him in court. The U.S. House of Representatives debated his work. Pusillanimous cops have left hostile messages using fake names. Federal prosecutors credited his stories for the arrest of a doctor who sold fake medicine to dying patients. And a frantic state legislator literally caught sleeping with lobbyists sprinted down state capital hallways to evade his questions in Sacramento.