Friday, August 05, 2011

DR. MICHAEL CHAN: CERRITOS DOCTOR CONVICTED OF PERFORMING UNNECESSARY SURGERIES ON HEALTHY PATIENTS IN $154 MILLION MEDICAL INSURANCE FRAUD SCHEME

Doctor CardImage by Saima via Flickr
FROM THE ORANGE COUNTY DISTRICT ATTORNEY!

SANTA ANA – A doctor charged in the largest medical fraud prosecution in the nation, the 19 co-defendant Unity Outpatient Surgery Center (Unity) scheme, was convicted today of performing unnecessary and dangerous surgeries on over 160 patients in order to fraudulently bill medical insurance companies. Michael Chan, 65, Cerritos, pleaded guilty to the court to 40 felony counts including conspiracy to commit insurance fraud, insurance fraud, aiding and abetting capping with white collar crime sentencing enhancements. He faces a sentence ranging from probation up to 28 years in state prison at his sentencing on a date that is to be determined.

Of the 19 defendants charged in the Unity case, 13 were indicted by a criminal grand jury on June 13, 2008. The Orange County Grand Jury examined 1,054 exhibits and heard testimony from 56 witnesses over 28 days, resulting in a 70-page indictment. The indicted defendants include an attorney, accountant, three doctors, and patient recruiters known as “cappers.”  The recruitment of patients, or “capping,” is illegal in California. 

In addition to Chan, two additional indicted defendants have been convicted and sentenced in this case. Doctor William Wilson Hampton, Jr., 55, Seal Beach, pleaded guilty May 8, 2009, to 47 felony counts including conspiracy, insurance fraud, and capping and was sentenced to 16 years in state prison.

Capper Sue Nanda, 43, Costa Mesa, pleaded guilty Feb. 20, 2009, to 22 felony counts including conspiracy, capping, grand theft, filing false tax returns, failing to file tax returns, and making false and fraudulent statements. She was sentenced Aug. 7, 2009, to 10 years in state prison and ordered to pay over $500,000 in restitution for personal and corporate back taxes. Capper Maria DeJesus Licea Rosales, 44, pleaded guilty Aug. 7, 2009, to 96 felony counts including conspiracy, capping, insurance fraud, grand theft, filing fraudulent tax returns, and sentencing enhancements for white collar crime and loss over $2.5 million. She was sentenced to eight years in state prison.

NOTE: The above information is from the Orange County District Attorney's Office.
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