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Grace Kwon, 57, of Lincoln, R.I.
Grace Kwon, 57, of Lincoln, R.I.Pawtucket Police Department

PAWTUCKET, R.I. — The owner of a local massage parlor who recently forfeited $650,000 in a racketeering case is also being investigated for potential medical fraud and money laundering against one of the biggest health insurers in Massachusetts.

Grace Kwon, the owner of Harmony Spa, is a corporate officer for several physical therapy entities in Greater Boston whose owner is facing federal charges of health care fraud. Chang Goo Yoon, a South Korean national, was arrested last month at John F. Kennedy International Airport in New York as he attempted to leave the country.

Yoon had been banned from practicing in Colorado, California, New York, and Washington, D.C., and excluded by the U.S. Department of Health from participating in federal health care programs.


Nevertheless, Yoon, 59, who resided in Waltham, Mass., incorporated several physical therapy entities, using the same address, and began operating in Massachusetts in 2009.

Yoon is accused of billing patients for non-existent appointments and billed claims using a former employee’s identity, according to an affidavit filed by the FBI in U.S. District Court, Boston. He is also accused of billing patients for physical therapy when he was actually at the Golden Nugget casino in Atlantic City, N.J., or the MGM Casino in Springfield, Mass., according to the affidavit.

Kwon, 57, is listed as a corporate officer with Yoon — at times, the only other person listed — on several entities: Doctor Physical Therapy and Lee Chiropractic in Brookline, Mass., GoodPT and Doctors Physio Group in Waltham.

When the Pawtucket police began investigating Kwon’s massage parlor in 2019, they also looked into the spa’s connection to medical fraud.

Kwon was under investigation for allegedly signing and cashing checks from Blue Cross Blue Shield of Massachusetts issued to other people and depositing $47,000 into her personal account and $46,000 into the account for Harmony Spa, according to affidavits from Pawtucket police supporting a search warrant.


A spokeswoman for Attorney General Peter F. Neronha said that the Pawtucket police are working with federal authorities. A spokeswoman for the FBI office in Boston declined comment.

A lawyer for Kwon did not respond to a request for comment. Kwon pleaded no contest last week to RICO and other felonies connected with the massage parlor. She was sentenced to three years suspended with probation and forfeited about $650,000 in proceeds and assets.

Amanda Milkovits can be reached at amanda.milkovits@globe.com. Follow her on Twitter @AmandaMilkovits. John R. Ellement can be reached at john.ellement@globe.com. Follow him on Twitter @JREbosglobe.