Junyi Liu, also known as "Jenny," has pleaded guilty to a major health care fraud scheme, as announced by Matthew Podolsky, the Acting United States Attorney for the Southern District of New York. Liu admitted to one count of conspiracy to commit health care fraud, involving fraudulent billing of insurance providers for unnecessitated or non-existent acupuncture and physical therapy services at Manhattan, Brooklyn, and Queens medical offices.
"Junyi Liu led a fraud scheme in which she and her co-conspirators bilked Medicare and other insurers out of millions of dollars by submitting fraudulent claims for acupuncture and physical therapy services," Podolsky said. He further commented that Liu misused the health care system and her professional license, which led to her current awaiting sentencing.
Between 2018 and 2021, Liu, a licensed acupuncturist, collaborated with other professionals to file misleading claims to Medicare and other insurers. The scheme involved creating false medical documentation to justify the fraudulent claims and providing financial incentives, including cash and expensive gifts, to prolong the illicit activities. Liu enlisted various personnel to support the scheme, including receptionists and cashiers who distributed cash kickbacks to patients to encourage them to participate in the fraudulent activities.
Additionally, from April 2020 to September 2021, Liu attempted to secure COVID-19 unemployment benefits deceitfully by filing false applications. As part of her guilty plea, Liu will return the misappropriated unemployment funds.
Liu, aged 70, faces a maximum 10-year prison sentence for conspiracy to commit health care fraud. Under her plea agreement, she will pay over $23 million in restitution and almost $40,000 to the New York State Department of Labor, along with forfeiting more than $15 million.
Others involved in the scheme, namely Noemi Algodon, Mohamed Elmandouh, Gerard Estrella, Ramon Garcia III, Henler Datu Tahil, Jonathan Laqui, and Mitzy Baldovino, have also entered guilty pleas.
The case was carried out by the Complex Frauds and Cybercrime Unit, with significant input from U.S. Department of Health and Human Services and IRS Criminal Investigation units, and valuable support from the New York State Attorney General's Medicaid Fraud Control Unit and the U.S. Department of Labor.
Assistant U.S. Attorneys Timothy V. Capozzi and Jerry Fang are overseeing the prosecution.
