Orange County Surgery Scam Falls Apart

Add a couple more to the long line of doctors that are billing medical insurance companies for unnecessary exams.

According to the Los Angeles Times, 65-year-old Dr. Michael Chan of Cerritos was convicted on August 4^th of performing unnecessary and dangerous surgeries. More than 160 patients were involved in what is a $154-million medical insurance scam.

Chan, who is one of 19 defendants accused in the scam, pled guilty in Orange County Superior Court to 40 felony counts, which include insurance fraud and conspiracy to commit insurance fraud.

Patients were lured in by promises of cash or low-cost cosmetic surgeries.

Across the U.S, nearly 3,000 people allegedly agreed to undergo unnecessary procedures, such as surgeries for sweaty palms and colonoscopies. These procedures were all performed at the Unity Outpatient Surgery Center, which is now closed, and where Chan was the owner and medical director.

Recruiters, known as “cappers,” targeted employees from businesses in 39 states who were covered by PPO insurance plans. Prosecutors likened them to “body snatchers.”

Chan, who specialized in invasive gynecological surgeries, would perform laparoscopy, tubal ligation, colporrhaphy and hysterectomies.

Other doctors who are accused along with Chan are Dr. William Hampton of Seal Beach and Dr. Mario Rosenberg of Beverly Hills. They are accused of ignoring basic medical protocol, which includes failing to obtain medical information, not meeting with patients beforehand and neglecting to follow up.

Nine defendants have pled guilty in the case, including Hampton, who was sentenced to 16 years in state prison.

The remaining nine are scheduled for appearances and a pretrial hearing at the Central Justice Center in Santa Ana. Along with the doctors and cappers, the defendants also include an attorney, an accountant and several administrators.

As of now, his sentencing date has not been set.