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Litigation

Nov. 28, 2015

Federal prosecution of alleged insurance scam expands

Executives falsely billed over half a billion dollars and paid illegal kickbacks to doctors for referrals, prosecutors say.

By Gautham Thomas
Daily Journal Staff Writer

LOS ANGELES ? The U.S. attorney's office for California's Central District added two cases Tuesday in the prosecution of an alleged fraud scheme that hit insurance companies with more than half a billion dollars in fraudulent billings.

Prosecutors say the fraud stemmed from tens of millions in illegal kickbacks to doctors paid to funnel spinal surgery patients to two hospitals.

On Mon...

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