A Beverly Hills surgeon who pleaded guilty to workers’ compensation fraud received a 10-year prison sentence — the “largest” ever in such a case in California, the Orange County District Attorney’s Office said.
Dr. Randy Rosen pleaded guilty Friday to eight felony counts of insurance fraud and two felony enhancements for official misconduct for a loss of more than $500,000 in two separate cases involving the recruitment and employment of body brokers to find and pay patients to undergo unnecessary Naltrexone implant surgeries and cortisone shots, the county attorney said in a statement.
Prosecutors accused Dr. Rosen of billing multiple insurance companies for the unnecessary procedures performed on drug-addicted patients, according to the district attorney̵
7;s office.“Due to this massive scheme and conspiracy, insurance companies were fraudulently billed for approximately $600 million and paid out approximately $50 million,” the office said.
Prosecutors also said Rosen required patients to undergo unnecessary drug tests that he sent to Lotus Laboratories, which was owned by his girlfriend, Liza Visamanos. Lotus Laboratories allegedly billed at least 22 operators more than $3 million for testing.
Pursuant to the deal, Dr. Rosen to pay $9.1 million in restitution and not to seek payment for more than $22.35 million in outstanding workers’ compensation, money that prosecutors said will be freed up for other injured workers.
Visamanos pleaded guilty to two felony counts of insurance fraud and was sentenced to one year of home confinement.
WorkCompCentral is a sister magazine to Business Insurance. More stories here.
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