Former VA Podiatry Chief and Sunrise Shoes CEO Indicted for Health Care Fraud Scheme

[nitpicker]

https://www.justice.gov/usao-edca/pr/former-va-podiatry-chief-and-sunrise-shoes-ceo-indicted-health-care-fraud-scheme

Department of Justice
U.S. Attorney’s Office
Eastern District of California

FOR IMMEDIATE RELEASE
Friday, December 16, 2016

Former VA Podiatry Chief and Sunrise Shoes CEO Indicted for Health Care Fraud Scheme

Conspired to Pay and Receive Kickbacks and Commit Contracting Fraud

SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment Thursday against Anthony Lazzarino, 66, former Chief of Podiatry for the VA’s Northern California Health Care System, and Peter Wong, 58, founder and CEO of Sunrise Shoes and Pedorthic Service, charging them with health care fraud, conspiracy to pay and receive kickbacks on medical referrals, and conspiracy to commit wire fraud, United States Attorney Phillip A. Talbert announced.

According to court documents, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing the Veterans Health Administration for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino referred patients directly to Sunrise in violation of VA policy, and agreed with Wong to offer kickbacks in return for such referrals. Finally, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements and omissions to the VA regarding where the shoes were manufactured, in the course of applying for an estimated $59 million contract.

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