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Nearly two dozen arrested in insurance fraud scheme

January 10, 2011 |  9:23 am

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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