DOI Targets Attorneys Tied to Referral Payola Network By Robert Warne - June 23, 2003
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Authorities peeled back another layer in a geographical fraud triangle that is suspected of making nearly $3 million in illegal claims dollars disappear. Although no arrests were made, 10 search warrants were executed June 18 on the homes, businesses and storage units of lawyers in Sacramento, Los Angeles and Las Vegas counties suspected of receiving payola for referring clients to a variety of chiropractic clinics.
The attorneys were rooted out last Wednesday after information obtained from an earlier sting on a chiropractic firm implicated their involvement.
A portion of the fraudulent enterprise was brought to a screeching halt in January when authorities tossed a wrench into the cogs of the Baldini & DePaoli Chiropractic clinic’s shady dealings.
An investigator infiltrated the firm by being hired as a clerk at one of the clinics. From his inside vantage point the Department of Insurance (DOI) found out that patients would sign in and go next door to a gymnasium to work out instead of receiving treatment.
Some patients had multiple accounts that were billed to different insurance companies for the same treatment on the same day. A percentage of the money obtained from patients’ carriers would then be transferred to a separate company.
Investigators realized that the information obtained from the clinics was just the tip of the iceberg and there was considerable participation from a variety of lawyers, which led to Wednesday’s raid.
The Sacramento County District Attorney is currently examining all the evidence and has yet to file any charges.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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