Chiropractors Snared in Orange County Insurance Fraud Scheme

February 9, 2009

Eight Orange County chiropractors are among a dozen people arrested for an alleged insurance fraud kickback scheme.

Three office administrators and a lawyer were also part of the alleged plan to defraud insurance companies through patient referrals and overbilling. It’s illegal for chiropractors and lawyers to exchange money for patient referrals.

District attorney’s investigations set up a sting operation targeting medical professionals already suspected of fraud.

Letters were sent proposing a fee-splitting scheme in which providers would pay up to 30 percent of a patient’s billing in exchange for the referral. A fake law office was also set up to snare the defendants.

All defendants posted bail and most are due in court in March.

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