Judy Chan then allegedly prepared the bills for Medicare and other government and private healthcare programs, using the inflated amounts, substantially increasing the amount of money owed to the Chans' clinic for medication.
The government alleges the scheme illegally boosted the clinic income by $1.7 million. Alfred Chan made false entries on patients' medical records so that they matched the billings. The records indicated that patients had received larger doses of various drugs than they had actually received, DOJ said.
The false statement, obstruction, and money laundering charges relate to steps allegedly taken by the Chans to hide their assets once they became aware of the government investigation. On a financial disclosure form required by the government, the couple didn't declare bank and brokerage accounts and properties owned by them. They allegedly transferred assets to shield them from the reach of law enforcement, DOJ said.