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New indictments in O.C. medical scheme

June 27, 2008 1:58:02 PM PDT
There were new indictments Friday morning in an alleged medical fraud scheme in Orange County as part of an ongoing investigation.It's considered the largest medical insurance fraud case in the country. A 70-page indictment was unsealed in court that named 19 defendants, including three doctors previously mentioned. Dr. Michael Chan, Dr. William Hampton, Jr. and Dr. Mario Rosenberg all face felony counts for their alleged involvement in the $154 million scheme.

Authorities allege that nearly 3,000 healthy people were recruited from across the United States to receive unnecessary medical procedures, including operations for sweaty palms.

The healthy patients would get cash or cosmetic surgery in return for undergoing procedures. The surgeries took place at a Buena Park facility formerly called the Unity Outpatient Surgery Center.

The patients were contacted by cappers, or recruiters. Three cappers have already pled guilty, and three administrators have also already been convicted.

Attorney Roy Dickson is accused of creating fake documents to disguise the illegal capping activities, and accountant Andrew Harnen also allegedly helped hide the scheme from insurance companies.

The investigation goes back to about November 2001, and authorities said insurance companies paid out more than $20 million in just a 9 month period.


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