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Beverly Hills surgeon sentenced to 10 years for comp fraud

Beverly Hills

A Beverly Hills surgeon who pleaded guilty to workers compensation fraud received a 10-year prison sentence — the “largest” ever in such a case in California, the Orange County District Attorney’s Office said.

Dr. Randy Rosen pleaded guilty Friday to eight felony counts of insurance fraud and two aggravated white collar crime enhancements for a loss of more than $500,000 in two separate cases that involved recruiting and hiring body brokers to find and pay patients to undergo unnecessary Naltrexone implant surgeries and cortisone shots, county prosecutors said in a statement. 

Prosecutors charged Dr. Rosen with billing numerous insurance companies for the unnecessary procedures performed on drug-addicted patients, according to the district attorney’s office.

“Due to this massive scheme and conspiracy, the insurance companies were fraudulently billed approximately $600 million and paid out approximately $50 million,” the office said.

Prosecutors also said Rosen required patients to undergo unnecessary drug tests that he sent to Lotus Laboratories, which was owned by his girlfriend, Liza Visamanos. Lotus Laboratories allegedly billed at least 22 carriers more than $3 million for testing.

Pursuant to the deal, Dr. Rosen was ordered to pay $9.1 million in restitution and not to pursue payment on more than $22.35 million in outstanding workers compensation liens, money that prosecutors said will be freed up for other injured workers.

Ms. Visamanos pleaded guilty to two felony charges of insurance fraud and was sentenced to one year of home confinement.

WorkCompCentral is a sister publication of Business Insurance. More stories here.