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Conspirators in $200M comp scheme get prison, $2M in penalties

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workers compensation scheme

Conspirators involved in a massive workers compensation kickback scheme were ordered to serve prison sentences and pay more than $2 million in penalties for their roles in what federal prosecutors have referred to as a “pay to play scheme “involving hundreds of injured workers for medical treatments and services, the U.S. Department of Justice announced on Friday. 

Among the defendants sentenced on Wednesday and Thursday was an attorney, a chiropractor, two business owners and several marketers who were accused of referring patients for unnecessary and sometimes painful tests, treatments, pain medications, and durable medical equipment, billing workers compensation insurers, according to a statement from the justice department. 

Defendants included Fermin Iglesias, who referred patients for treatment and who was sentenced to 60 months in custody and was required to forfeit about $1 million. A federal judge also imposed five years’ probation on two of Mr. Iglesias’ corporations and imposed a $500,000 joint fine. Co-conspirator Miguel Morales, who was involved in the clinics, was sentenced to 12 months and one day in custody, and was required to forfeit $140,000, according to the statement.

Alexander and Ruben Martinez, clinic managers, were each sentenced to 33 months in custody and three years of supervised release, according to the statement. Their two companies were each sentenced to five years’ probation and fines totaling $65,000. Another co-conspirator, Jennifer Louise White, who allegedly referred workers to doctors who provided sleep studies, among other charges, was sentenced to 24 months in custody, and ordered to pay a fine of $25,000.

Attorney Sean E. O’Keefe, who represented injured workers from his office in San Diego, was sentenced to 13 months and was required to forfeit $300,000. San Diego chiropractor Steven J. Rigler was sentenced to six months and was ordered to forfeit $150,000, according to the statement.

The latest round of sentencing helped wrap up an investigation that produced over 30 convictions to date, according to the U.S. District Attorney’s office.

Lawyers for the defendants could not immediately be reached for comment.

 

 

 

 

 

 

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