The South Gate-based owner of a tattoo removal business has entered a guilty plea for his role in a fraudulent healthcare scheme that exploited paraplegics and cheated the tax system out of over $1.7 million. Joseph Tusia, 60, from Leominster, Massachusetts, admitted to charges of health care fraud and tax evasion, as reported by the U.S. Attorney's Office, Central District of California.

Running a laser tattoo removal business and 10 durable medical equipment companies across California, Nevada, and Massachusetts, Tusia deliberately omitted his name from official records, a move intended to shirk tax responsibilities, according to court documents. An application submitted to Anthem Blue Cross by Tusia for a small group health insurance plan, dated December 30, 2015, falsely claimed nine individuals, all seemingly Tusia's full-time employees, were eligible for coverage.

Per his plea agreement, Tusia's roster of employees included friends and associates, specifically targeted for their paraplegic status and need for medical supplies, expected to purchase said supplies from equipment companies under Tusia's control. Between March 2016 and June 2020, fraudulent claims were filed to Anthem by Tusia's group, bringing in approximately $1,731,215 from Anthem, all while the named employees did not meet the eligibility criteria, according to the U.S. Department of Justice.

Tusia acknowledged in his plea agreement before Judge George Wu that he'd failed to declare over $1.5 million in income earned from the DMEs from 2017 through 2020. Efforts to avoid the tax man included creating multiple DMEs and opening bank accounts in the names of his associates, thereby evading taxes effectively but unlawfully. He faces a cumulative 15 years in federal prison with sentencing scheduled for December 5, as published by the U.S. Department of Justice.

The investigation into Tusia's affairs was conducted by the United States Department of Labor – Employee Benefits Security Administration, the FBI, and IRS Criminal Investigation. Assistant United States Attorney Jeff Mitchell of the Major Frauds Section will lead the prosecution. Any subsequent updates and information on this case can be sought via Ciaran McEvoy, the Public Information Officer for the U.S. Attorney’s Office.