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Fountain Valley rehab center owner accused of $1M Medicare scheme

May 12, 2011 12:00:00 AM PDT
The owner of an Orange County rehabilitation facility has been accused of a fraudulent Medicare scheme totaling nearly $1 million.

Tuan Duc Tran was arraigned on Monday after surrendering to federal authorities. The 50-year-old pleaded not guilty to charges contained in a nine-count indictment.

Tran operated the Fountain Valley Healthcare Center. From May 2003 through January 2008, Tran allegedly submitted fraudulent claims to Medicare for services that were not prescribed by treating doctors and that were not medically necessary. The indictment also alleges Tran employed unlicensed personnel at the center.

Each of the nine mail fraud charges in the indictment carries a maximum statutory sentence of 20 years in federal prison.