East Bay woman gets two years in prison for role in mail fraud scheme

A federal judge sentenced a Union City woman to two years in federal prison after she pleaded guilty to participating in a multi-million dollar scheme to defraud California’s State Disability Insurance program, authorities said.

Linda Nguyen, 68, conspired in a plot to commit mail fraud and pleaded guilty on July 17. U.S. Attorney David L. Andersen of the Northern District of California announced the sentence Wednesday.

The scheme cost the SID program between $3.5 million and $9.5 million, authorities said. U.S. District Judge Phyllis J. Hamilton ordered Nguyen to pay restitution.

In her plea, authorities said, Nguyen admitted that she agreed with a licensed physician and others to steal from the SDI program, which provides a partial percentage of wages to eligible California workers unable to work because of an illness or injury not related to work. The program also covers pregnancies.

Those needing SDI benefits must file a claim for them that is supported by a certification from a physician or practitioner. Nguyen in her plea admitted she helped non-disabled people prepare and submit applications and certifications that were fake, authorities said.

She also charged her clients for 10% of the overall benefits they received and paid a physician for the certifications, authorities said.