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Video Broadcast Chiropractor OD’s on Mushroom Claims Runtime 2:52 Real Media 56k | Broadband Windows Media Player 56k | Broadband Quicktime 56k | Broadband

In 1999 Shah Kazemi, the CEO of Monterey Mushroom—the largest mushroom distributor in the United States with more than 4,500 employees and four farms in California—noticed that one chiropractor’s business was flourishing from his farm’s rich compost of claims. Kazemi reported his observations to authorities, which then moved in and unearthed some dirty claims.

Working together, state authorities and civil attorneys found enough evidence to put chiropractor Steven Thompson, his wife and certain associates into legal traction.

Thompson’s two bogus medical corporations, The Peninsula Medical Group and The Integrated Family Medical Group appeared to be owned by licensed medical doctors. But in reality, Thompson just rented the doctor licenses from willing parties and acted within the medical clinics as if he and a number of other chiropractors were actual medical doctors.

The mushroom company reportedly became alarmed when its employees were making daily visits to the chiropractor even though their injuries only required a one-hour-per-week visit. Company officials also noticed that they were receiving double and triple billings for the same visit that employees were making to the chiropractor's office.

The case went to trial Sept. 11 and on Dec. 11 Thompson was found guilty of creating the illegal fraudulent businesses and for over-billing clients.

Thompson was ordered to pay approximately $479,000 to the state and Watsonville-based Monterey Mushroom. The court also granted the plaintiff "injunctive relief" precluding any other such unlawful practices.

According to the Santa Cruz Sentinel, Monterey County Superior Court Judge Robert O'Farrell said Thompson’s operation “was a sophisticated, formalized and well concealed strategy that was formed with the intent of maximizing profits by deceiving patients and the Workers' Compensation system.”

Dr. Charles Salzburg, who rented his license to Thompson, as a witness told the court that had given out his license to at least 21 other clinics in California. With Salzburg’s revelation authorities hope that busts like this will continue to mushroom across the state.