The state Franchise Tax Board (FTB) reports today that physician John S. Han, 61, and his wife Sonya Han, 55, were arrested on felony counts of Medicare fraud and filing fraudulent state income tax returns after a search of their Buena Park home.
According to FTB special agents, Mr. Han, who owns John S. Han, M.D., Inc. and operates Pain Medical Center in Norwalk, billed Medicare for more than $10 million in services from 2001-05 but failed to report more than $6.2 million in income on his state income tax returns.
Appoint that man to Obama's cabinet!
The couple owes the state more than $1.3 million in unpaid personal income tax, penalties, interest, and the cost of the investigation, and more than $1.1 million in unpaid corporate income tax, penalties, interest, and the cost of the investigation, says the FTB.
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Each felony tax count carries a maximum term of 3 years in state prison. The couple were sent to separate LA County detention facilities, where bail was set at $2.4 million for Mr. Han and $1.3 million for the Mrs. Their arraignment date has not been set.