Operation Nail Polish: San Jose Spa Owners Charged with Health Insurance Fraud

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    NEWSLETTERS

    NBC Bay Area
    Prosecutors say about 90 percent of the spa's business was billed fraudulently.

    The owners and two employees at a popular San Jose spa are charged with health insurance fraud, accused of billing insurers for chiropractic treatments, “when in reality they were providing free mani-pedis.”

    The owners of the San Jose Chiro Spa are accused of using their spa, near Montague Expressway and 680, to bilk insurance companies out of more than $7 million, according to Santa Clara County Deputy District Attorney Christopher Kwok.

    The investigation, dubbed "Operation Nail Polish," began in 2012. Prosecutors say an undercover investigator went into the spa numerous times for manicures and pedicures.

    Employees reportedly took the investigator's insurance information and charged the insurance company for chiropractic treatments.

    “Non-therapeutic massages, facials, manicures and pedicures are great, but they are not medical treatments," prosecutor Christopher Kwok said in a release. "Portraying them as medical treatments to get insurance reimbursement is a crime.”

    Prosecutors say about 90 percent of the spa's business was billed fraudulently.

    The owners and employees will be in court next month for their arraignment.