California DOJ files Statement of Interest in $40 Million COVID-19 Testing Fraud: Lawsuit Alleges Sterling Pathology and its owner Dr. Yang Chang in Seal Beach Engaged in Widespread Billing Fraud
LOS ANGELES, CA, April 20, 2026 /24-7PressRelease/ — Attorney Gloria Juarez has been selected for recognition in “The Most Influential Women in Healthcare Litigation – 2026”, reflecting her work in high-impact healthcare fraud litigation, including ongoing cases involving alleged Covid-19 pandemic relief fraud.
Juarez’s recent recognition comes as she leads litigation connected to allegations of widespread healthcare fraud against Seal Beach-based Sterling Pathology Medical Group and its owner, Dr. Changgao Yang, in a federal false claims action pending in the United States District Court for the Eastern District of California. The case is captioned United States v. Sterling et al. Case 23:00756.
The lawsuit alleges that Sterling engaged in a scheme to bill for Covid-19 testing services that were never performed, expired, or reported outside permissible timeframes, resulting in the alleged misuse of more than $16.7 million in taxpayer-funded healthcare programs.
“This recognition reflects the importance of holding healthcare providers accountable when public funds are at stake,” Juarez stated.
“The allegations in the Sterling matter underscore how vulnerable systems, particularly during the Covid-19 emergency, were exploited at scale when oversight was exploited and ignored.”
According to the Complaint, the alleged conduct dates back to at least 2013 and involves Sterling and Yang’s systematic upcoding and unbundling of laboratory services to inflate reimbursements. The lawsuit further alleges that Sterling and its owner Yang exploited a known loophole in biopsy-related billing, particularly involving so-called ‘special stains’—additional lab tests that can be billed separately from a standard biopsy. By allegedly ordering these add-on tests at unusually high rates, the Complaint alleges laboratories can significantly increase, and in some cases double or triple, reimbursement on a single specimen.
The action further alleges that Sterling and Yang’s conduct impacted healthcare systems, particularly serving vulnerable and elderly patients. “In simple terms, the cases allege that Sterling used routine biopsies as multipliers- a loophole to double and triple bill for additional special stain tests that were not medically necessary- or allegedly sometimes even performed,” Juarez stated. “When that improper practice of placing profits ahead of patient care is scaled across hundreds of thousands of patients, it can generate hundreds of millions in improper reimbursements.”
In a related Los Angeles Superior Court proceeding, the Court denied multiple requests by Sterling and its affiliates Jenny Chang and Elite Medical Billing from Hanford, CA. to broadly shield their financial records, ruling that patient privacy does not extend to concealing corporate billing practices and revenues in healthcare fraud actions. Judge Maureen Duffy-Lewis denied Sterling and Yang’s repeat bids for secrecy. The case is captioned The State of California v. Sterling et al., Case 21STCV000923.
The federal false claims case remains pending in the Eastern District of California, with damages alleged in excess of $40 million of diverted taxpayer funds.
Juarez’s recent nomination for The Most Influential Women in Healthcare Litigation – 2026 highlights her role in advancing complex fraud enforcement matters and representing whistleblower-driven actions involving alleged misuse of public healthcare funds. “Cases like this are not just about healthcare abuse—they are about protecting patients and ensuring that taxpayer-funded programs are not treated as open checkbooks,” Juarez added. “When companies manipulate billing systems, the real harm falls on patients and the public.”
“Whistleblowers play a critical role in exposing misconduct that would otherwise remain hidden,” Juarez stated. “These cases send a message that fraudulent conduct in healthcare will be challenged and brought to light.”
Individuals with information regarding Sterling Pathology, Yang Chang, Elite Medical Billing, and Jenny Chang a.k.a Jenny Au’s alleged billing practices, special stain upcoding, biopsy testing practices, or related conduct are encouraged to contact the Law Offices of Gloria Juarez.
Media Contact:
Law Offices of Gloria Juarez
Gloria Juarez, Esq.
gloria@thegjlaw.com
949-288-3402
—
For the original version of this press release, please visit 24-7PressRelease.com here
Legal Disclaimer:
The content on this page is syndicated from independent third-party providers. Kyrion Media makes no warranties or representations regarding the accuracy, completeness, legality, or reliability of the information, including text, images, videos, or licenses. If you are affiliated with this content or have any complaints, copyright concerns, or requests for removal, please contact us at retract@kyrionmedia.com with the specific URL of the content in question. We will review and address valid requests promptly.
