Colorado Man Charged in Health Care Fraud Scheme

NEWARK, N.J. - A Colorado man who owned and directed a New Jersey-based allergy practice was indicted on health care fraud charges, U..S. Attorney Robert Frazer announced.

Clarence "Lance" Cutsforth, 58, of Buffalo Creek, Colorado, was charged in a six-count indictment with one count of conspiracy to commit health care fraud and five substantive counts of health care fraud. He made his initial appearances on October 21, 2026, before U.S. Magistrate Judge Scott T. Varholak in Denver federal court and was released on $10,000 unsecured bond.

"This Defendant engaged in an elaborate scheme to enrich himself and his co-conspirators by submitting bogus claims to health insurers, including Medicare, for allergy shots that patients did not need or receive. These charges further demonstrate our Office's dedication to protecting American taxpayers by rooting out fraud, waste and abuse in the health care system."

- U.S. Attorney Robert Frazer

According to documents filed in this case and statements made in court:

From October 2020 through April 2023, Clarence "Lance" Cutsforth conspired with Dr. Kevin Chongsup Kim, also known as "Chong Kim," Jin Kim, also known as "Andrew Kim," and an individual identified in the indictment as "Doctor 1" to fraudulently bill Medicare and private health care benefit plans for allergen immunotherapy shots, despite the fact that no licensed physician examined the patient or prepared the allergy shots as required. Specifically, Cutsforth partnered with Chong Kim-who owned and operated a medical practice identified in the indictment as "Medical Practice 1"-and Andrew Kim-who worked at Medical Practice 1 as the practice manager, responsible for insurance billing.

Cutsforth identified insurance beneficiaries who tested positive for allergies and referred them to Integrated Ancillary Services, an allergy practice he owned, in Holmdel, New Jersey. Then Cutsforth-not a licensed physician-would determine the beneficiaries' treatment plan and prepare allergen shot doses for them. In an effort to conceal the scheme from insurance providers, Cutsforth did not bill insurance providers directly for the allergen shots. Rather, his co-conspirators, through Medical Practice 1, submitted reimbursement claims using either Chong Kim or Doctor 1's medical credentials, even though neither examined the patient, nor prepared or supervised the preparation of the antigens. In this manner, Medical Practice 1 billed Medicare and the private health care benefit plans for up to a year's supply of allergen shots for beneficiaries that did not want the shots and/or did not receive them.

For their roles in the scheme, Dr. Kevin Chongsup Kim, 58, of Holmdel, New Jersey, and Jin Andrew Kim, 62, of Middletown NJ, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to separate, two-count Informations that charged each with conspiracy to commit health care fraud and conspiracy to make false statements relating to health care fraud matters. Both are awaiting sentencing.

If convicted, Cutsforth faces a statutory maximum sentence of 10 years imprisonment on the health care fraud conspiracy and substantive health care fraud counts, and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation.

The Department of Justice has established the National Fraud Enforcement Division. The core mission of the National Fraud Enforcement Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The National Fraud Enforcement Division will fulfill that mission by coordinating with agencies responsible for administering benefit programs; partnering with federal, tribal, state, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification of fraud against taxpayer dollars; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The attorneys in the National Fraud Enforcement Division will work every day to protect the financial integrity of our government and the tax system that supports it.

The government is represented by Assistant U.S. Attorney Robert L. Toll of the Health Care Fraud and Opioids Enforcement Unit in Newark. Valuable assistance in the prosecution was provided by former Assistant U.S. Attorney Garrett J. Schuman.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Defense counsel:

Dr. Kevin Chongsup Kim: Bruce Levy, Esq.

Jin Andrew Kim: John Azzarello, Esq.