Colorado Man Indicted Over Allegedly Billing Insurers for Allergy Shots Patients Didn't Need or Get

Published Oct. 29, 2026. Case statuses are current as of that date.

Allergy shots are supposed to be prescribed by a doctor who has examined the patient, and mixed under a physician's supervision. Federal prosecutors in New Jersey say a non-physician who owned an allergy practice decided patients' treatment himself, prepared their doses, and had a partner practice bill Medicare and private insurers under doctors' names for shots that patients often didn't want or receive.

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 counts of health care fraud, the U.S. Attorney's Office for the District of New Jersey announced on Oct. 23, 2026 [1]. Two alleged co-conspirators have already pleaded guilty.

Important: Cutsforth has been charged, not convicted. The U.S. Attorney's Office said: "The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty" [1].

How the scheme allegedly worked

According to documents filed in the case and statements made in court [1]:

1. The partners. From October 2020 through April 2023, Cutsforth allegedly conspired with Dr. Kevin Chongsup Kim ("Chong Kim"), Jin Kim ("Andrew Kim") and a person identified only as "Doctor 1." Chong Kim owned a medical practice identified as "Medical Practice 1," where Andrew Kim was practice manager responsible for insurance billing.
2. Finding patients. 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.
3. No doctor involved. Cutsforth, who is not a licensed physician, then allegedly decided the beneficiaries' treatment plans and prepared their allergen shot doses.
4. Billing under someone else's name. To hide the scheme from insurers, Cutsforth did not bill directly. Instead, Medical Practice 1 submitted claims under Chong Kim's or Doctor 1's credentials, even though neither had examined the patient or prepared or supervised preparation of the antigens.
5. A year's supply at a time. Medical Practice 1 allegedly billed Medicare and private plans for up to a year's supply of allergen shots for beneficiaries who did not want the shots and/or did not receive them.

The release does not give a dollar total for the claims.

U.S. Attorney Robert Frazer said: "As alleged, 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" [1].

The people charged and their status

Clarence "Lance" Cutsforth, 58, of Buffalo Creek, Colorado [1]

• Charges: Conspiracy to commit health care fraud and five counts of health care fraud. Each count carries up to 10 years in prison and a fine of up to $250,000, or twice the gross gain or loss, whichever is greatest.
• Court: He made his initial appearance on Oct. 21, 2026, before U.S. Magistrate Judge Scott T. Varholak in Denver and was released on a $10,000 unsecured bond.
• Status: Indicted; presumed innocent. A plea and next court date are not stated (status pending).

Dr. Kevin Chongsup Kim ("Chong Kim"), 58, of Holmdel, New Jersey [1]

• Previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to a two-count information charging conspiracy to commit health care fraud and conspiracy to make false statements relating to health care fraud matters. Awaiting sentencing.

Jin Andrew Kim ("Andrew Kim"), 62, of Middletown, New Jersey [1]

• Previously pleaded guilty before Judge Quraishi to a separate two-count information with the same charges. Awaiting sentencing.

"Doctor 1" is not named and is not described as charged. The FBI's Newark field office investigated, and Assistant U.S. Attorney Robert L. Toll of the Health Care Fraud and Opioids Enforcement Unit is prosecuting [1].

Why this matters to patients

Allergen immunotherapy involves injecting small, increasing doses of the substances a person is allergic to. That's why rules require physician involvement. When treatment is planned and mixed by someone without a medical license, patients can be exposed to risk, and claims for shots they never received can show up on their insurance records and count against their benefits.

Red flags

These are general warning signs of this kind of scheme; not every one is alleged in this case.

• An allergy test offered at a health fair, workplace or pharmacy, followed by a push to start shots right away.
• Being told you need a full year of shots before a doctor has examined you.
• Shots or vials mailed or handed to you without a clear prescribing physician.
• Insurance statements listing allergy treatment from a provider you've never seen, or for more doses than you got.

What to do if you're targeted

1. Ask who the prescribing doctor is and whether they've personally reviewed your case.
2. Check your explanation of benefits or Medicare Summary Notice for allergy services you didn't receive.
3. Decline treatment you don't want, and keep a record of doses you actually receive.
4. Report suspected fraud to your insurer's fraud line, to 1-800-MEDICARE, or to the HHS Office of Inspector General at 1-800-HHS-TIPS or oig.hhs.gov.
5. Report other scams to the FTC at ReportFraud.ftc.gov.

Case status (as of Oct. 29, 2026)

Defendant	Court	Status	Source
Clarence "Lance" Cutsforth, 58, Buffalo Creek, Colo.	U.S. District Court, District of New Jersey (initial appearance in Denver)	Indicted (conspiracy to commit health care fraud, 5 counts of health care fraud); released on $10,000 unsecured bond; presumed innocent	[1]
Dr. Kevin Chongsup Kim ("Chong Kim"), 58, Holmdel, N.J.	U.S. District Court, District of New Jersey	Pleaded guilty (conspiracy to commit health care fraud, conspiracy to make false statements); awaiting sentencing	[1]
Jin Andrew Kim ("Andrew Kim"), 62, Middletown, N.J.	Same	Pleaded guilty (same charges); awaiting sentencing	[1]

Statuses can change.

Sources

1. U.S. Attorney's Office, District of New Jersey, "Colorado Man Charged in Health Care Fraud Scheme," Oct. 23, 2026. https://www.justice.gov/usao-nj/pr/colorado-man-charged-health-care-fraud-scheme

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