Fraudulent Fugitive

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It’s good to be wanted, unless you’re on the federal “Most Wanted” list. David Y. Kim, a former chiropractor from Los Angeles, Ca., was definitely wanted, but by the FBI after he went on the lam. (He was on the run because he willingly participated in a $15 million Medicare fraud scheme.)

Kim, who owned and operated a Koreatown-based sole proprietorship, caused fraudulent claims to be submitted to Medicare for physical therapy services that were never performed. In general, Medicare beneficiaries usually received only a massage and acupuncture services. (These types of services are not covered by Medicare. And the individuals performing those services were not licensed perform them.) Between March 2012 and January 2014, Medicare paid $690,519 for the fraudulent claims from Kim’s clinic. (Kim pocketed illegal proceeds totaling $379,785.)

Following a 2015 interview with federal law enforcement agents, Kim fled the country for South Korea. (Did he really think he’d never be found?) Four years later, he was found living in Ho Chi Minh City, Vietnam. The FBI brought him back home, where he was placed in federal custody.

The former member of the federal “Most Wanted” list of fugitives pleaded guilty to one count of health care fraud and one count of receiving illegal kickbacks in exchange for Medicare referrals to his business. He was sentenced to 30 months in federal prison for submitting fake claims for physical therapy services that were either not reimbursable or not provided. On top of the prison sentence, Kim must also pay $690,519 in restitution to Medicare.

Kim was not the only person involved in the scam. He had three co-conspirators that helped carry out the Medicare fraud scheme. Joseff Sales, 42, and Danniel Goyena, 42, both of Buena Park paid Kim’s company to refer Medicare beneficiaries to their businesses. These two fraudsters plus Marlon Songco, 43, of Sylmar, hired licensed physical therapists to supervise Kim’s unlicensed staff. The three co-conspirators each confessed to playing a part in the $15 million Medicare fraud scheme. Sales and Goyena are jointly liable for $7,896,007 in restitution.

Today’s Fraud of the Day comes from a February 4, 2020 Department of Justice press release, “Returned Fugitive Sentenced to 2½ Years in Federal Prison for Role in Medicare Fraud Scheme Featuring Bogus Physical Therapy Claims.”

SANTA ANA, California – A former chiropractor who was on a federal “Most Wanted” list of fugitives was sentenced today to 30 months in federal prison for his role in a $15 million Medicare fraud scheme in which claims were submitted for physical therapy services that either were not reimbursable or were not provided.

David Y. Kim, 57, who previously lived in the Arlington Heights district of Los Angeles, was sentenced by United States District Judge David O. Carter. Judge Carter also ordered Kim to pay $690,519 in restitution to Medicare.


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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.