11 Chinese immigrant street vendors were arrested for selling counterfeit goods, Medicaid fraud, and tax fraud. The defendants, who operated cash businesses, allegedly stole nearly $150,000 from the New York City Human Resources Administration (HRA) when they lied about their finances on their Medicaid applications. Four of the defendants were also charged with filing false tax returns for over 3 years.
According to the HRA, all 11 defendants had been receiving Medicaid benefits while owning multiple expensive homes, luxury vehicles, and multiple bank accounts. Amongst these defendants some have deliberately lied about their income on taxes and instead reported incomes low enough to receive such benefits.
New York City pays for Medicaid and Health Care Plus programs for people with low-income and few assets. To qualify for Medicaid in New York City, a single adult’s income is limited to $10,830 and and his financial assets should be worth less than $13,800. A couple with two children must have income under $33,075 and assets worth less than $26,130.
Many individuals investigated for Medicaid fraud produce tax returns in the course of investigation that show very low incomes. In many case that triggers an inquiry into the validity of the numbers and cases are referred to the IRS and the NYS Department of Taxation. Deliberately concealing income for the purpose of evading paying taxes is not only a federal crime but also a state crime.
Defendants Yun Sue Huang and Cun Liang Lin were charged with, one count of grand larceny in the Second Degree, one count of welfare fraud and 7 counts of offering a false instrument for filing.
Defendants Xing Yun Hu, Choi Mui Ha, Yun Liu Jin, Chun Fei Chen, Sheng Li Weng, Xiulian Wang were charged with one count of grand larceny, one count of welfare fraud, and one count of offering a false instrument for filing.
Defendants Yun Ling Huang and Ling Di Gao were charged with one count of grand larceny one count of welfare fraud, and 10 count of offering a false instrument for filing.
Defendant Wei Bi Zou were charged with one count of grand larceny one count of welfare fraud, and 7 count of offering a false instrument for filing.