Fraudulent health claims and identity theft lead to prison sentence for Alexandria woman

Alexandria, Virginia – An Alexandria woman, Khin Phoo Ngon, also known as Karen Ngon and Kyaw Zaw Ni, was sentenced today to two years and two months in prison for repeatedly submitting fraudulent health insurance claims. Ngon illegally collected $128,748 in payments through these schemes.

Fraudulent Claims and Illegal Payments

In 2018, Ngon, 27, was a student at George Washington University participating in a study-abroad program in Sydney, Australia. She purchased a health insurance policy through Cultural Insurance Services International (CISI), which provides health insurance for study-abroad students. Under CISI’s policies, students can submit claims for reimbursement along with proof of payment for health-related costs incurred abroad.

On November 13, 2018, Ngon submitted a fraudulent claim for an appendectomy, purportedly performed at St. Vincent’s Hospital in Sydney. The claim included a forged invoice for $107,368.31 in Australian currency, approximately $79,715 in U.S. dollars. The dates of service claimed were October 28-29, 2018, during which Ngon was actually in the United States. CISI paid this fraudulent claim.

In 2019, Ngon enrolled in another study-abroad program, this time in Zurich, Switzerland. Although she withdrew from the program and returned to the United States on June 10, 2019, she submitted a fraudulent claim to CISI for treatment of a “minor heart attack” with a forged invoice from University Hospital of Zurich for 48,670 Swiss francs, about $49,029 in U.S. dollars. Ngon received some treatment at the hospital, but the actual payment was only 800 Swiss francs. CISI paid this fraudulent claim, and Ngon used the proceeds to pay restitution in a previous criminal case involving fraud and identity theft.

Later, Ngon purchased another policy through CISI. On July 23, 2019, she submitted another fraudulent claim, asserting she had her appendix removed again at St. Vincent’s Hospital in Sydney. This claim included a forged invoice for $152,368.31 in Australian currency, approximately $106,606 in U.S. dollars. The claimed dates of service were July 14-15, 2019, when Ngon was again in the United States. This time, CISI denied the claim.

On December 18, 2019, Ngon submitted a fourth fraudulent claim for emergency dental care in Brussels, Belgium, with forged records indicating she paid €15,175 to a dentist and €3,719 to a pharmacy, approximately $21,040 in U.S. dollars. The claimed date of service was December 16, 2019, when Ngon was in the United States. CISI denied this claim as well.

Additional Fraud and Identity Theft Charges

Ngon also pleaded guilty to fraud and identity theft charges in the District of Columbia related to a scheme defrauding a pandemic relief program. In response to the COVID-19 pandemic, the District of Columbia implemented the STAY DC program to provide financial relief to renters experiencing hardship. Beginning in 2021, Ngon submitted fraudulent applications for relief, four times in her own name and three times in the names of others, including one person who did not live in Washington. This resulted in program payouts costing the District of Columbia more than $246,000. Ngon pleaded guilty in the D.C. Superior Court to six charges related to this fraud on April 23. Sentencing for this case is set for August 9.

Deceptive Conduct Post-Conviction

After pleading guilty to charges in both the Eastern District of Virginia and Washington, D.C., Ngon directed her sister to create websites in her name with false information about her educational, professional, and philanthropic history. One website purported to represent a fictitious charity founded by Ngon to provide aid to the people of Myanmar, advertising “partnership opportunities” and soliciting “financial contributions.” At sentencing, Ngon acknowledged this additional deceptive conduct.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division, made the announcement after the sentencing by Senior U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.