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Queens Chronicle

Flushing doctor sentenced for fraud

Hoi Yat Kam ran Medicare scheme

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Posted: Thursday, February 6, 2014 10:30 am | Updated: 1:47 am, Thu Feb 13, 2014.

A Flushing physician, with two clinics in the community, was sentenced last Friday to serve 12 months and a day in prison for a scheme that fraudulently billed Medicare more than $15 million.

Dr. Hoi Yat Kam, 59, who operated URI Medical Service PC and Sarang Medical PC, both in Flushing, was also sentenced in U.S. District Court for the Eastern District of New York to three years of supervised release and to pay $2.2 million in restitution.

Kam pleaded guilty last year to conspiracy to commit healthcare fraud. According to court documents, he conspired with others in the scheme by providing a variety of spa services, such as massages and facials.

He also offered free meals and social activities such as dancing classes to Medicare recipients.

In exchange for the services, the patients gave their Medicare numbers to Kam, who billed them as medical services that were never provided and were not medically needed.

URI and Sarang were clinics that allegedly provided physical therapy and removal of lesions.

Kam and his co-conspirators submitted approximately $15 million in false claims to Medicare.

The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the FBI as part of the Medicare Fraud Strike Force.

Since its inception in 2007, the strike force, which operates in nine cities around the country, has charged more than 1,700 defendants who have billed the Medicare program fraudulently for more than $5.5 billion.

This is not the first time Kam has been in trouble with the law. In 2012, he was indicted as part of a scheme to file fake no-fault claims to insurance companies from 2005 to 2007.

At that time he was listed as owner of several clinics in the Bronx that allegedly treated car accident victims.

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