Mocobizscene- A significant breakthrough has been made in the Santa Clara County Superior Court, as it has handed down sentences to the last remaining members of a 15-person crew responsible for orchestrating a colossal $40 million medical insurance scam in California.
Operating under the name “The Care Group,” this primarily Los Angeles-based group shamelessly exploited the pain and suffering of individuals, profiting from selling unnecessary and exorbitantly priced prescriptions and medical equipment to unsuspecting residents of California.
From 2015 to the pivotal year of 2020, these fraudsters conducted their operations from their luxurious offices in Beverly Hills. The main players were Global Marketing, a telemarketing company, and California General DME, a durable medical device company, alongside a network of pharmacies.
Their scheme involved bombarding countless individuals with unnecessary prescriptions for expensive items such as neck braces. They also concocted specialized pain creams, often overcharging insurance companies up to $4,000 for products that cost only a fraction of that. The doctors who prescribed these items were often merely names on paper, never having seen or examined the supposed “patients” they treated.
Telemarketers were told to make the scheme seem more legitimate by creating fake partnerships with entities like the “Physician’s Network” or “Doctor’s Network.” The scam managed to swindle approximately $40 million from insurance companies in California, with Santa Clara County alone suffering a loss of $2.3 million. In the end, the court ordered the scammers to pay back a total of over $8.3 million, marking a record for the Santa Clara County’s District Attorney’s Office in terms of a single restitution recovery in an insurance fraud case.
The District Attorney’s Office Bureau of Investigation, in collaboration with C.R.E.A.M. (Cash Rules Everything Around Me), conducted a comprehensive and extensive investigation that spanned several years. This impressive endeavor successfully unraveled the complexities of the deceptive enterprise. The task force, which involved the California Department of Insurance, the California State Board of Pharmacy, and various district attorneys’ offices across the state, exemplified the importance of collaboration in dismantling such deeply rooted deceit.
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