Aspen Medical Ordered to Pay $36M for California Workers’ Comp Fraud
Posted on Feb 11, 2014
In a strange case of California workers’ comp fraud, the operators of a durable medical equipment firm will answer to charges of gross overbilling for their physical therapy machines, defrauding insurers of more than $36 million.
According to the Orange County district attorney’s office, Fresno-based Aspen Medical Resources L.L.C., rented out a hot and cold therapy machine to patients and hospitals for treatment of pain and inflammation.
Between 2005 and 2013, Jeffrey Edward Campau, Abraham Khorshad, and Landen Alan Mirallegro of Aspen Medical allegedly defrauded workers’ comp insurers by charging them for the rental of two units when a single machine was provided, charging over $15,000 for each use of a machine valued at less than $500.
Campau, Khoshad and Mirallegro also stand accused of collecting $12 million from insurers under other company names, including receiving payment under different addresses and tax identification numbers. All three men will likely be charged with multiple felony counts of conspiracy and submitting fraudulent claims, and could face a sentence of up to 53 years each in state prison.
According to Aspen’s billing records, companies that were charged for machine rental include the California State Compensation Insurance Fund, American International Group Inc., Liberty Mutual Holding Co., and CNA Financial Corp., among others.
To find out how to get maximum compensation for your injuries without breaking the law, click the link on this page to order our FREE book, The Northern California Workers’ Compensation Survival Manual. If you have more questions, all the Ledgerwood Law Group today at 888-761-7383 to speak to an attorney.