Five Arrests Made in Undercover Calif. Operation

Investigators from the California Department of Insurance Urban Auto Fraud Task Force arrested five individuals last week stemming from an undercover operation named “Operation Pay Out.” All five suspects were booked at the San Bernardino County Jail on felony charges of insurance fraud.

Arrested were Dr. Michael Loader, 49, a chiropractor, of Claremont; Bruce Sutton, 45, of Ontario; Ramona Toney, 48, of Riverside; and Denise Martin, 35, of Torrance. Bernita Ingram, 38, of Fontana was arrested a day after the other individuals. More arrests are anticipated.

Investigators allege Loader, while working at De Anza Health Clinic in Ontario, agreed to provide medical examinations, medical reports and medical billings for the purpose of bodily injury claims submitted to various insurance carriers. Undercover investigators were allowed to sign in for treatments never rendered and Loader would allegedly increase the medical billings to maximize profit.

During this investigation, Loader was informed these were staged traffic collisions. Additionally, Loader reportedly agreed to prepare medical reports and billings for individuals he never saw. Various law offices handled the claims and negotiated settlements with the insurance companies.