Two Californians arrested in $20 million insurance fraud, kickback scheme

“These co-conspirators allegedly ordered screenings and prescriptions for injured workers in order to enrich themselves, not to protect their patients,” Insurance Commissioner Ricardo Lara said in a statement. “By investigating fraud, my department is helping keep insurance costs down for all California consumers and businesses.” (Credit: Shutterstock)

California residents Bradley Dean Groscost, 59, and Felix Koltsov, 57, self-surrendered to the Orange County Central Justice Center after being charged with multiple felony counts of insurance fraud, money laundering and unlawful referrals for allegedly conspiring to bill insurers in excess of $20 million as part of a kickback referral scheme.

From 2014 to 2017, Groscost operated five workers’ compensation clinics in Southern California. Doing business as DSJ MGT Inc., in Fountain Valley, Groscost controlled treatments, referrals and medical and financial records at the clinics even though he was not licensed to practice medicine.