Korean Dermatology Clinic Raid Targets Clinics in Georgia, Tennessee
Korean Dermatology Clinic Raid operations were carried out by federal authorities targeting several dermatology clinics run by a Korean-American physician as healthcare fraud investigations intensify across the United States.
According to the Federal Bureau of Investigation (FBI), agents executed search warrants on April 8 at three locations of the Skin Cancer & Cosmetic Dermatology Center (SCCDC) in Georgia and Tennessee.
Multiple agencies participated in the operation, including the FBI, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), the Tennessee Bureau of Investigation (TBI), and local law enforcement agencies. Investigators reportedly entered the clinics and seized computers, documents, and medical records as part of the investigation.
The clinics involved in the raid are operated by Dr. John Y. Chung, a Korean-American dermatologist who has run approximately ten dermatology clinics across Georgia and Tennessee.
Federal Search Warrants Executed at Multiple Clinics
Authorities said investigators entered one clinic in Blue Ridge, Georgia, around 7:30 a.m. on the day of the raid. Agents seized computers and various medical documents during the operation.
Patients who had arrived for scheduled appointments were reportedly informed that their visits had been canceled due to the ongoing investigation and were asked to leave the premises.
On the same day, investigators also carried out search operations in Chattanooga, Tennessee, at clinic locations along Shallowford Road and Gunbarrel Road. Witnesses reported that several patients were present in the waiting areas when agents arrived.
According to eyewitness accounts, investigators wearing tactical vests marked with police insignia were seen working alongside officials from multiple agencies. Staff members were also questioned during the operation, and some clinics temporarily closed afterward while notifying patients of appointment changes.
Authorities have not disclosed the specific allegations or the full scope of the investigation. An FBI spokesperson said the agency cannot comment further because the case remains active.
Past Medicare Investigation Involving the Clinics
Dr. Chung previously faced a federal investigation related to Medicare billing practices.
According to the U.S. Department of Justice, investigators examined allegations that between 2010 and 2020 the clinics submitted false claims to Medicare and Medicaid. The case centered on claims that Mohs skin cancer procedures performed by other medical personnel were billed as if Dr. Chung had personally performed them.
The investigation also alleged that certain billing practices violated insurance reimbursement rules when multiple procedures were performed on the same patient on the same day.
In 2023, Dr. Chung reached a $6.6 million civil settlement with the federal government. The case originated from a whistleblower lawsuit, though the settlement resolved the matter without an admission of wrongdoing. At the time, Chung’s legal team stated that the agreement was made to avoid prolonged litigation.
Nationwide Crackdown on Healthcare Fraud
The Korean Dermatology Clinic Raid comes amid broader federal and state efforts to crack down on healthcare and welfare fraud nationwide.
In California, Attorney General Rob Bonta announced on April 9 that prosecutors had charged 21 suspects in connection with a $267 million hospice fraud scheme. Authorities said the suspects allegedly enrolled individuals in Medi-Cal using stolen identities and billed for hospice services that were never provided.
Officials say such investigations reflect an increasing focus by law enforcement agencies on fraud involving public healthcare programs such as Medicare, Medicaid, and Medi-Cal.
