Pasadena Man Wanted in Healthcare Fraud Scheme

Authorities say a former Pasadena man remains a fugitive in a healthcare fraud scheme.

Henry Penaranda, 40, is listed as a co-defendant in a scheme where a husband and wife billed Medicare $6 million for occupational therapy services that were not provided.

Simon and Grace Hong operated JH Physical Therapy in Walnut and billed Medicare for treatment not provided. Instead, Medicare beneficiaries received acupuncture and massage services, which were not reimbursable by Medicare, according to the government.

Grace Hong was also found guilty of directing co-conspirator therapists to falsify medical records to make it appear as if the services had actually been provided and funneling most of the Medicare reimbursements to companies owned by her 58-year-old husband.

Through the scheme, the conspirators billed Medicare from October 2009 until December 2012 about $6 million in false claims, and received roughly $3.9 million, evidence reportedly showed.

Simon Hong is serving more than 10 years behind bars for his role in two cases.

Keith Canlapan, 41, of West Covina, pleaded guilty to the conspiracy count and is awaiting sentencing in downtown Los Angeles.

In a related case, Roderick Concepcion, 45, of Anaheim, pleaded guilty to health care fraud and is set to be sentenced next month.

Hong was convicted last year in Los Angeles federal court of conspiracy and three counts of health care fraud, according to the U.S. Department of Justice.