Fraud of the Week
Workers Comp Fraud – California
Amount – $50 million
A surgeon pleaded guilty to workers compensation fraud for recruiting and hiring body brokers to find and pay patients to receive unnecessary treatments. The doctor billed numerous insurance companies for the procedures, fraudulently billing them for $600 million for which $50 million was paid out. The doctor required the patients to receive unnecessary blood tests from his girlfriend's lab, and she billed 22 insurers more than $3 million for that testing. The doctor pleaded guilty to eight felony counts of insurance fraud and two aggravated white collar crime enhancements. The doctor was ordered to pay $9.1 million in restitution, not to pursue payment on more than $22.35 million in outstanding workers compensation liens, and sentenced to 10 years in prison. The girlfriend pleaded guilty to two felony counts of insurance fraud and was sentenced to one year of home confinement.

