In a significant federal case, Joseph Tusia, a 60-year-old resident of Leominster, Massachusetts, and owner of a South Gate-based tattoo removal business, has pleaded guilty to orchestrating a complex health care fraud scheme that generated over $1.7 million. Tusia’s plea also includes charges of tax evasion, marking a significant victory for federal investigators and prosecutors determined to crack down on white-collar crime.
The Fraudulent Scheme Unveiled by Joseph Tusia
Joseph Tusia operated not only a laser tattoo removal business but also ten durable medical equipment (DME) supply companies across California, Nevada, and Massachusetts. Despite his widespread business operations, Tusia strategically concealed his involvement in these DMEs by avoiding association with their bank accounts and state registrations, a tactic designed to evade tax liabilities.
The fraudulent activities began in earnest on December 30, 2015, when Tusia, along with a co-conspirator, submitted an application to Anthem Blue Cross for a small group health insurance plan. These plans are specifically tailored to provide benefits and health coverage to permanent, full-time employees. However, Joseph Tusia deceitfully listed nine individuals as full-time employees of his tattoo removal business, despite the fact that none were actually employed there. These individuals were friends and associates of Tusia who were paraplegic and in need of medical supplies.
Exploiting Vulnerability for Financial Gain
Joseph Tusia’s scheme revolved around exploiting the health care needs of his paraplegic associates. By falsely enrolling these individuals as employees, he ensured they received coverage under the fraudulent health plan. From March 2016 to June 2020, Tusia and his accomplices submitted false claims to Anthem for medical supplies purportedly provided by his DMEs. These fraudulent claims, meticulously crafted to appear legitimate, resulted in Anthem disbursing approximately $1,731,215 to the DMEs controlled by Tusia.
The use of paraplegic individuals in this scheme highlights the ethical breaches involved. Joseph Tusia manipulated the genuine health care needs of vulnerable individuals for his financial benefit, highlighting the exploitative nature of his actions. This facet of the case not only illustrates the depths of Tusia’s deceit but also raises serious moral and ethical questions about the exploitation of vulnerable populations in fraudulent schemes.
Tax Evasion: A Parallel Crime by Joseph Tusia
In addition to defrauding the health care system, Joseph Tusia engaged in significant tax evasion. From 2017 through 2020, he deliberately failed to report over $1.5 million in income generated by his DMEs. Tusia’s tax evasion tactics included using the names of associates and co-conspirators for bank accounts and business registrations, further obscuring his financial activities from the IRS.
This aspect of the case highlights the multifaceted nature of white-collar crime, where fraud and tax evasion often intersect. By evading taxes, Joseph Tusia not only deprived the federal government of substantial revenue but also compounded his criminal behavior, showcasing a blatant disregard for legal and fiscal responsibilities.
Legal Consequences for Joseph Tusia and Ongoing Investigations
Joseph Tusia’s fraudulent activities ultimately led to his guilty plea for both health care fraud and tax evasion. United States District Judge George Wu has set his sentencing date for December 5. Tusia faces a maximum sentence of 10 years in federal prison for the health care fraud charge and up to five years for tax evasion, reflecting the severity of his crimes.
The investigation into Joseph Tusia’s activities was a collaborative effort involving the United States Department of Labor – Employee Benefits Security Administration, the FBI, and IRS Criminal Investigation. This multi-agency approach emphasizes the importance of interdepartmental cooperation in tackling complex fraud cases.
A Stern Warning to Fraudsters
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section, who is prosecuting the case, emphasized the importance of this conviction in the broader context of deterring health care fraud. The successful prosecution of Joseph Tusia sends a clear message to potential fraudsters that manipulating health care systems and evading taxes will result in severe legal consequences.
As the December 5 sentencing date approaches, the case of Joseph Tusia serves as a reminder of the pervasive nature of white-collar crime and the relentless efforts of federal authorities to bring perpetrators to justice. Tusia’s fraudulent scheme, marked by ethical violations and financial deceit, highlights the critical need for continued vigilance and rigorous enforcement of health care and tax laws.
