A San Diego clinic operator is accused of turning routine medical billing into a multimillion-dollar cash machine, after prosecutors say a two-year investigation uncovered a massive scheme that billed Medicare and private insurers for unnecessary or never-performed services.
Authorities have identified the defendant as Kim Huynh and say she was arrested last Wednesday. According to prosecutors, Huynh was charged with health care fraud, money laundering and practicing medicine without a license, and the clinic was shut down as part of the enforcement action. Investigators say more than $11 million in claims were submitted, with over $10 million billed to Medicare and more than $4.6 million actually paid. Bail was set at $750,000, and a bail-review hearing is scheduled for Wednesday, March 18.
Probe And Charges
In a press release from the San Diego County District Attorney, prosecutors said a joint probe by the DA’s Office, the FBI and the Department of Health and Human Services Office of Inspector General tracked the clinic’s operations and records and ultimately uncovered the billing pattern.
DA, FBI, and HHS-OIG, Shut Down Medical Center Committing Healthcare Fraud. DETAILS: https://t.co/HEpVieert4 @FBISanDiego @OIGatHHS @SummerStephan pic.twitter.com/9MGc7x14D0
— SD District Attorney (@SDDistAtty) March 16, 2026
The release states that the clinic submitted more than $11 million in total claims, including over $10 million to Medicare. Private insurers were billed more than $600,000 and paid in excess of $100,000, according to prosecutors. Investigators also allege that clinic technicians carried out quantitative EEG, or qEEG, scans even though they did not hold the licenses required to perform that kind of neurodiagnostic testing.
Officials' Statements
San Diego County District Attorney Summer Stephan said in the release that when people “steal millions of dollars from our healthcare system, it diverts critical resources away from patients who truly need care and undermines public trust,” according to the San Diego County District Attorney.
Robb R. Breeden of HHS-OIG said his office will continue to work with our law enforcement partners to hold accountable those who exploit vulnerable beneficiaries, while FBI Special Agent T. J. Holland called the alleged conduct unconscionable, according to the release.
Allegations And Patient Impact
The complaint filed by prosecutors alleges that a man identified as Iman Shirali presented himself to patients as a physician even though he had no medical training or certification. The release says Shirali has since died but does not suggest his death was tied to the alleged fraud.
According to prosecutors, the scheme revolved around billing for neurodiagnostic tests and other services that were either performed or recorded by unlicensed staff and then submitted as claims to Medicare and private insurers.
Legal Status And Next Steps
Huynh was arrested on March 11 and pleaded not guilty last Friday, according to court filings cited in the release. Deputy District Attorney Jonathan Fraenkel has been assigned to prosecute the case.
The district attorney’s office says Huynh faces up to 14 years in prison if convicted on all charges. Bail remains at $750,000, and the next court appearance is a bail-review hearing set for Wednesday.
Wider Enforcement Context
Federal and state agencies have ramped up crackdowns on fraudulent clinics and bogus billing networks in recent years, launching national operations that have charged hundreds of defendants and alleged billions of dollars in false claims, according to the Department of Justice.
Public records connect the business named in the current prosecution to Tubi Connect Inc., which is listed in the National Provider Identifier registry as operating under the name White Ink Clinic with Kim Huynh recorded as an authorized official. Those federal provider records tie the operation to La Jolla and San Diego addresses, and the NPI record is accessible through the registry entry for the provider.
What To Watch
The March 18 bail-review hearing will determine whether Huynh’s release conditions change while prosecutors build their case. Additional details are expected to surface in future court filings and agency updates as the prosecution moves forward.
