U.S. District Judge John Mendez sentenced the founder of an orthotics and bracing company to five years in prison for healthcare fraud and conspiracy to commit wire fraud.
1. Peter Wong founded and served as CEO of Sunrise and Shoes Pedorthic Service Corp. from March 2008 to February 2015, when he partnered with the former chief of podiatry for the Veterans Affairs Northern California Health Care System Anthony Lazzarino, MD, to defraud the VA.
2. The two billed for custom work and services prescribed but not supplied in shoes that were delivered to veterans. They also pleaded guilty to materially false statements to the VA when they revealed where the shoes were manufactured in 2016.
3. Mr. Wong and Dr. Lazzarino were found guilty of committing healthcare fraud and conspiracy to commit wire fraud in May 2019.
4. Dr. Lazzarino is scheduled for sentencing in February 2020. He faces a maximum penalty of 10 years in prison and $250,000 fines for each healthcare fraud count. He also faces another $250,000 fine and five years in prison for the wire fraud conspiracy count.