Nearly two dozen arrested in insurance fraud scheme
Nearly two dozen people have been arrested in a $1-million medical insurance fraud ring in Los Angeles, authorities said Monday.
A two-year investigation uncovered a scheme in which the owner of two Los Angeles healthcare centers allegedly created fraudulent medical reports for nonexistent patients or for those who never received treatment, authorities said.
The reports were allegedly passed on to Norberto De Jesus Rivas, 38 who would use them to file insurance claims. Rivas and the centers' owner, Albert Lee Ingram, 62, would split the settlements in cases in which the claimant did not exist, authorities said.
In cases with actual claimants, they each allegedly took a third, and the claimant received the remainder.
Insurance Commissioner Dave Jones’ office estimated more than $1 million was stolen in the scheme.
Rivas was already in custody on other charges. Ingram and about 20 others were arrested last week on insurance fraud and conspiracy charges.
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-- Robert Faturechi
EDITOR'S PICKS:
Insurance fraud seems to be growing in this town. Not just a few weeks ago I read a report on several medicare centers reporting fraud also. I believe that one totaled $16million.
Concerning this sting, 20 were arrested. Usually as a bail bonds company we would be able to bail these individuals out.
But as we read through the article it seems that there might be some problems concerning the funds needed to be produced for the bail bonds.
If someone is arrested for fraud, as in this case, then the judge will place additional precautions on how the defendant funds their bail bonds.
The judge does whats called a 1275. Which is a request to make sure the funds are of legal sources. This is similar when someone is arrested for dealing narcotics.
Posted by: ventura county bail bonds | January 10, 2011 at 10:52 AM
Book 'em, Johnny.
Posted by: Mark | January 10, 2011 at 11:19 AM
Rough Industry, fraud on both sides of the fence! I hope this really gets cleaned up on both sides. As everyone usually pays for this type of fraud. Maybe create a restitution fund and give it back to the public.
Posted by: Zeolit | January 10, 2011 at 11:39 AM
So far this Dave Jones cat is my hero. First he jumps right on Blue Shield for their ridiculous hikes, then he and his team nail these losers. Somebody get this guy a costume and cape!
Posted by: David | January 10, 2011 at 12:00 PM
What? They weren't Armenian?
Posted by: My opinon means nothing | January 10, 2011 at 04:27 PM
Robert Faturechi... Good article. Can you share the names of the 2 health care centers through which they filed the false claims please?
Posted by: CA Moon | January 10, 2011 at 07:57 PM