SAN JOSE – A popular spa provided free “mani-pedis” but then turned around and billed insurance companies thousands of dollars for chiropractic treatments.
The Santa Clara District Attorney’s office conducted a year-long investigation of San Jose Chiro Spa on Landess Avenue. The investigation revealed fraudulent billing that totaled over $7,000,000 in losses. This figure represents the largest fraud case ever prosecuted in Santa Clara County.
Authorities estimate that 90% of the spa’s practice came under such fraudulent billing
Owner Tracy Le was sentenced to two years in jail and 24 years of formal probation. Employee Lillian Be was sentenced to 6 months in jail 12 years of formal probation. Employee Honggam Tran was sentenced to 10 months in jail and 24 years of formal probation.
In addition, the three were ordered to pay $508,631 to Blue Shield of California, $2,752,501 to Optum, $3,117,813 to Anthem Blue Cross, $858,448 to Aetna, $68,141 to HealthComp and finally, $2,427 to the Santa Clara County District Attorney’s Office.
As is his custom in response to such cases, Insurance Commissioner Dave Jones said, “Insurance crimes are a multi-billion drain on California’s economy. Insurance fraud is not a victim-less crime – we all pay for these crimes through higher insurance premiums.”
Jones added, “We will continue our work and our partnerships with district attorneys to bring criminals to justice.”
