⏱ 2 min read
Julianna C. Lung, a 60-year-old San Diego woman, pleaded guilty to a massive health care fraud scheme, admitting she sold hearing protection devices to United States Border Patrol agents and other federal employees, then falsely billed insurance providers for nearly $1 million. The scheme, which targeted the Federal Employees Health Benefits program, involved Lung marketing the devices as medically necessary hearing aids, when in fact they were meant to protect hearing. Lung submitted approximately 385 fraudulent claims, resulting in $962,500 in reimbursements.
The investigation, led by the U.S. Office of Personnel Management, Office of the Inspector General, revealed that Lung told customers the devices were intended to protect their hearing, not treat a medical condition, and assured them their insurance would cover the cost. The devices were sold to federal employees, including Border Patrol agents, and their family members, with each device costing approximately $2,500.
Lung’s guilty plea is the latest in a series of efforts by the Department of Justice to combat health care fraud. The case is being prosecuted by Assistant U.S. Attorney George Manahan of the U.S. Attorney’s Office in the Southern District of California. Lung is scheduled to be sentenced on September 11, 2026, and faces a maximum penalty of five years in prison and a $250,000 fine.
The Department of Justice has made combating health care fraud a top priority, with the creation of the National Fraud Enforcement Division aimed at investigating and prosecuting those who commit fraud against the American people. Lung’s case is just one example of the division’s work to eliminate fraud and protect the integrity of the health care system.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: California
- Location: CA
- Source: DOJ Press Release
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