Colorado Man Indicted in New Jersey Health Care Fraud Scheme
Federal prosecutors indicted a Colorado man on October 21, 2026, for allegedly running a multi-year health care fraud scheme that billed Medicare and private insurers for unneeded allergy shots, justice.gov reported.
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Key Clinical Takeaways:
- Clarence “Lance” Cutsforth faces six counts of health care fraud and conspiracy related to billing for allergen immunotherapy shots that patients did not receive between October 2020 and April 2023.
- Co-conspirators allegedly submitted fraudulent claims using the medical credentials of licensed physicians who neither examined patients nor prepared the antigen doses.
- Two other defendants, Dr. Kevin Chongsup Kim and Jin Andrew Kim, previously pleaded guilty to related charges and await sentencing.
Indictment Details and Charges Against Clarence Cutsforth
Clarence “Lance” Cutsforth, 58, of Buffalo Creek, Colorado, owned and directed an allergy practice in New Jersey called Integrated Ancillary Services. According to an indictment filed in federal court, Cutsforth identified insurance beneficiaries who tested positive for allergies and directed them to his practice. Cutsforth—who is not a licensed physician—then determined treatment plans and prepared allergen shot doses.
To conceal the operation from insurance providers, Cutsforth did not bill insurers directly. Instead, the indictment alleges that he conspired with Dr. Kevin Chongsup Kim, owner of a separate medical practice, and practice manager Jin Andrew Kim. The co-conspirators submitted reimbursement claims to Medicare and private health benefit plans using the medical credentials of Chong Kim or another doctor referred to in court documents as Doctor 1. These physicians neither examined the patients nor supervised the preparation of the antigens.
U.S. Attorney Robert Frazer stated that the scheme involved billing for up to a year’s supply of allergen immunotherapy shots for beneficiaries who either did not want the treatments or never received them.
Cutsforth Faces Prison and Fines for Health Care Fraud
Cutsforth made his initial appearance on October 21, 2026, before U.S. Magistrate Judge Scott T. Varholak in Denver federal court. He was released on a $10,000 unsecured bond. The document contains a total of six counts against him, comprising one for health care fraud conspiracy and five separate substantive health care fraud offenses.
Upon conviction, Cutsforth could receive a statutory maximum of 10 years behind bars for both the conspiracy and substantive health care fraud charges, accompanied by a fine reaching up to $250,000 or double the amount of total financial gain or loss. Co-defendants Dr. Kevin Chongsup Kim, 58, of Holmdel, New Jersey, and Jin Andrew Kim, 62, of Middletown, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care fraud matters. Both men are awaiting sentencing. Defense counsel listed in court records includes Bruce Levy for Dr. Kevin Chongsup Kim and John Azzarello for Jin Andrew Kim.
FBI and Department of Justice Lead Fraud Investigation
Special agents with the Federal Bureau of Investigation, operating under the supervision of Newark Special Agent in Charge Stefanie Roddy, carried out the inquiry. The prosecution is handled by Assistant U.S. Attorney Robert L. Toll of the Health Care Fraud and Opioids Enforcement Unit in Newark, with assistance provided by former Assistant U.S. Attorney Garrett J. Schuman.
The Department of Justice prosecuted the case through its National Fraud Enforcement Division, which coordinates with administrative benefit agencies and law enforcement partners to identify and investigate fraud against federal taxpayer programs.
Disclaimer: The information provided in this article is for educational and scientific communication purposes only and does not constitute medical advice. Always consult with a qualified healthcare provider regarding any medical condition, diagnosis, or treatment plan.