A former chiropractor who was previously on a federal list of most wanted fugitives was sentenced on Feb. 4 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 were not reimbursable or not provided.

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

Kim pleaded guilty in September to one count of health care fraud and one count of receiving illegal kickbacks in exchange for Medicare referrals. In 2015, after meeting with federal law enforcement agents for an interview, Kim fled the United States and went to South Korea. The U.S. Department of Health and Human Services, Office of Inspector General later included Kim on its public list of most wanted fugitives.

Last February, Kim was found in Vietnam and was apprehended in Ho Chi Minh City, pursuant to a warrant from Interpol. FBI agents brought Kim back to the United States, where he has since remained in federal custody.

According to a plea agreement, between March 2012 and January 2014, Kim owned and operated New Hope Clinic in Koreatown.  He admitted to filing fraudulent claims with Medicare for physical therapy services that were not provided to patients. Kim received approximately 55% of the illegal Medicare proceeds. Medicare paid $690,519 in fraudulent claims from Kim’s clinic. Kim personally received illegal proceeds totaling $379,785.

Co-defendants Joseff Sales, 42, and Danniel Goyena, 42, the owners and operators of several companies involved in the scheme, paid New Hope for Kim’s referral of Medicare beneficiaries to their business. Sales, Goyena and Marlon Songco, 43, hired licensed physical therapists to occasionally supervise Kim’s unlicensed staff, who performed services that were not reimbursable under Medicare guidelines.

While at New Hope, Medicare beneficiaries often received only a massage and acupuncture – services that Kim knew Medicare did not cover – from individuals not licensed to provide physical therapy. Kim and his co-conspirators then submitted fraudulent claims for physical therapy to Medicare.

Sales, Goyena and Songco each pleaded guilty to federal criminal charges. Sales and Goyena were held jointly liable for $7.8 million in restitution.

The case was prosecuted by Assistant United States Attorney Alexander F. Porter, of the Major Frauds Section, and Ali Moghaddas, of the General Crimes Section.