In a recent legal development, a Pasadena doctor has agreed to plead guilty to charges of conspiracy for defrauding the California workers' compensation program out of over $3 million, as per the announcement made yesterday by the Justice Department. Dr. Kevin Tien Do, 59, struck a plea deal for one count of conspiracy to commit mail fraud and one count of filing a false tax return, as reported by the U.S. Attorney's Office, Central District of California. The physician was previously barred from the program due to a conviction for federal healthcare fraud but continued his involvement by scheming with a conspirator to bill for services under other doctors’ names.
Caught in the web of deceit, Dr. Do, after being suspended in 2018, admittingly conspired to wrongfully bill the state's Subsequent Injuries Benefits Trust Fund (SIBTF), concealing his participation by using other doctors' names in the billing process. According to the Justice Department's release, his initial court appearance was scheduled for yesterday afternoon in U.S. District Court in Santa Ana. The SIBTF, designed to compensate workers who suffer additional injuries on top of pre-existing disabilities, became a target for such fraudulent acts, with Liberty Medical Group Inc., where Do was employed, serving as the vessel for the misappropriated funds.
Despite the suspension that should have severed his ties with the workers' compensation matters, Do continued his work for Liberty, drafting and editing reports related to the SIBTF program. A plan was hatched by the owner of Liberty, neither a doctor nor a licensed medical professional, allowing Do to produce reports that the company would submit to the SIBTF program for payment. As outlined by the U.S. Attorney's Office, Central District of California, Do drafted these medical reports, and then they were fraudulently credited to other practicing medical professionals as part of the scam.
Further unveiling the depth of this fraudulent plot, the plea agreement exposes the fact that the actual owner of Liberty, an attorney and former Orange County prosecutor turned Superior Court judge, played a pivotal role in the conspiracy. The attorney managed the company’s financial transactions and channeled over $1.5 million to another entity under his control. Adding another layer to his criminal conduct, Do has also admitted to underreporting his income from Liberty by approximately $66,227 on his 2021 tax return. Following his guilty plea, he faces up to 20 years in federal prison for the mail fraud charge and an additional three years for the tax fraud count, as detailed by the U.S. Attorney's Office, Central District of California The investigation surrounding these allegations is being conducted by the FBI, IRS Criminal Investigation, and the California Department of Insurance, with Assistant United States Attorneys Charles E. Pell and Ryan J. Waters leading the prosecution.
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