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Dr. Mohammed Taek Kady, 55 from Chula Vista was arrested for operating a “complex, multi-level scheme” that bilked insurance companies by overcharging patients over $200,000 for examinations and prescription pain medication who did not need it.

Starting in 2007, Kady along with two employees were charged with California Penal Code Sections 182(a)(1), 182(a)(4), 487(a) and 550(b)(3) for their part in conspiring to commit medical insurance fraud.

In addition to the above mentioned charges, Kady was also charged with:
One count of Violation of California Welfare and Institutions Code section 14107(b)(4)(A)-Medi-Cal fraud.
Five counts of California Penal Code Section 487(a)- Grand Theft.
Seven counts of California Health and Safety Code section 11153(a)- Illegal Prescribing.
One count of Labor Code 3700.5(a)- Failing to provide worker’s compensation insurance.

Kady came to the authorities attention when a pharmacist at a San Diego pharmacy became suspicious when dozens of people tried to fill their prescriptions at the pharmacy. It turns out, that Kady and the pharmacy owner had an arrangement where Kady would send his patients to the particular pharmacy in exchange for a $3 per prescription kick back. Kady, who has been license since 1997 maintained clinics in Chula Vista and San Diego. If convicted, Kady faces up to 20 years in prison.

Dr. Nathan Kuemmerle, of Hollywood, was arrested by Redondo Beach Police and special agents with DEA. Kuemmerle runs a clinic in West Hollywood where he is alleged to have been distributing controlled substances by writing thousands of prescriptions for highly addictive patients.

Both men were charged on April 9, 2010 in United States District Court of conspiracy to distribute controlled substances and actual distribution of controlled substances. Both face up to 20 years in prison.

An investigation began after Redondo Beach Police arrested a man selling Adderall on Craigslist. The man told officers Dr. Kuemmerle was the individual who he obtained prescriptions from, sometimes without an examination and sometimes under an alias. This information was corroborated by other informants which led to an undercover officer posing as a patient and receiving his own prescriptions in exchange for cash.

A Duarte physician was sentenced to 48 months in federal prison for dispensing massive amounts of powerful and addictive painkillers including oxycodone and hydrocodone without examining patients. Dr. Daniel J. Healy received cash for the pills he was dispensing out of his office.

Healy, of Arcadia was arrested in 2009. Judge Manuel Real sentenced Dr. Healy to 500 hours of community service and 10 years of supervised release after he completes his prison sentence.

According to reports, from January 2005 to February 2009, Dr. Healy ordered and dispensed large amounts of painkillers to patients he did not examine. No physician in the nation purchased more hydrocodone pills than Healy. Prosecutors also say Healy profited off the purchase and sale of hydrocodone to the tune of $680,000 in 2008 alone.

On July 6, 2009, Dr. Healy plead guilty to 1 count of knowingly and intentionally distributing the painkiller oxycodone outside the usual course of professional practices and without legitimate medical purpose.

After receiving a report from the California Department of Justice, Bureau of Narcotic Enforcement, Attorney General Edmund G. Brown, Jr. said Corey Haim visited seven doctors and seven pharmacies to obtain 553 doses of prescription drugs.

The report states that from Feb 2, 2010 to March 5, 2010, Haim obtained 195 Valium pills, 194 Soma pills, 149 Vicodin pills and 15 Xanax. Brown, who has been at the forefront of cracking down on prescription-drug abuse continues to go after physicians and drug dealers who profit from overprescribing narcotics.

Haim’s name was attached to a prescription-drug ring out of Southern California. The ring allegedly orders prescription-drug scripts from vendors using identities stolen from doctors. The scripts are then sold on the street to addicts.

California physicians should be aware of identity theft when it comes to their DEA license. The San Diego Regional Pharmaceutical Narcotic Enforcement Team (RxNET) is conducting an investigation into unauthorized possession of prescription-drug scripts ordered from authorized vendors by individuals posing as California licensed physicians.

RxNET along with the California Department of Justice, Bureau of Narcotic Enforcement, Department of Health Care Services, Immigration and Customs Enforcement and other local law enforcement agencies are assisting in the investigation.

The investigation has so far linked 5,000 fraudulent prescriptions to the prescription-drug fraud ring. The ring starts with ordering prescription-drug scripts from legitimate vendors using the stolen identities of practicing physicians. They then either sell the scripts on the street to addicts or to people who are paid to fill the prescription then sell them on the street.

Attorney General Edmund G. Brown Jr. has filed more than 200 cases against physicians and patients. Brown credits the upgrades made to CURES, the state’s prescription-drug monitoring database in tracking down criminal offenders.

In addition to the potential criminal filings, physicians are also subject to the loss of their DEA license as well as the loss of their license by the California Medical Board.

Dr. Glen R. Justice, a prominent Orange County physician has agreed to plead guilty to defrauding insurance companies for injectable cancer medication that he never provided. Prosecutors said, Justice, the former director of the cancer center at Orange Coast Medical Center and the Pacific Coast Hematology/Oncology Medical Group received up to $1 million for the false claims.

Dr. Justice, of Corona del Mar has agreed to plead guilty to 5 counts of heath care fraud which caries a maximum 50 years in prison, $1.25 million fine and 3 years probation. According to the agreement, federal prosecutors will recommend a probationary sentence in lieu of prison. Justice is scheduled to be arraigned May 3, 2010.

Dr. Justice also faces discipline from the California Medical Board, however, an accusation has yet to be filed.

Dr. Andrew Rutland, of Anaheim won a temporary victory from the California Medical Board when an administrative law judge allowed him to keep practicing, however, he is not allowed to perform surgeries.

Judge James Ahler wrote in his opinion that Dr. Rutland does pose a “risk of danger” but felt the risk was specific to Dr. Rutland performing surgery and deliveries. Ahler stated that there have been no complaints or alleged misconduct unrelated to surgeries and deliveries.

Dr. Rutland surrendered his medical license in 2002 after a lengthy investigation where it was found that Rutland committed several ethical violations, botched surgeries and was responsible for the death of 2 babies.

Dr. Rutland applied and was granted a re-instatement by the California Medical Board only to have him face the possible second loss of a license for the current investigation that relates to the death of a woman who underwent an abortion. In the current medical board investigation, it is alleged that Rutland sedated the victim with anesthesia and that due to his lack of knowledge with the proper dosage, led to the woman’s death. In addition, he is accused of not having the proper medical malpractice insurance and performing surgery in a unlicensed facility.

Dr. Andrew Rutland, an OBGYN from Anaheim faces allegations before the California Medical Board for negligence in a case where a woman died during an abortion.

Rutland, had already lost his California medical license in 2002 after the death of a newborn, allegations he performed unnecessary hysterectomies, lied to patients and has sexual intercourse with a patient in his office.

As a result of these accusations, Rutland agreed to give up his medical license after a two year investigation. However, Dr. Rutland applied to have his license reinstated which was granted by the California Medical Board.

The current investigation which poses a potential loss of Dr. Rutlands medical license stems from an incident where a 30-year-old woman died last year allegedly after Rutland gave her anesthesia without knowing what dosage was safe. In addition, Rutland was found to be practicing in an unlicensed office and performing surgery outside of a hospital without malpractice insurance.

The California Medical Board is seeking to have a Rutlands license suspended until the medical board investigation is compete and an Accusation is filed saying Rutland “imminent danger to public health.”

California Business and Professions Code 2307(a) allows physicians and surgeons who have had their license revoked, surrendered or suspended to petition the California Medical Board for reinstatement or modification.

BP 2307 (b)(1) states that a petition for reinstatement by the California Medical Board may be made at least 3 years after the license was revoked or surrendered. However, you can upon a showing of good cause petition for reinstatement after 2 years.

If you are on probation to the California Medical Board you can petition the board to either modify your existing terms and conditions of probation and even petition for a termination of probation. You can do this pursuant to BP 2307(b)(2) and BP 2307(b)(3).

If your probation is for a period less than 3 years, you can petition to terminate your probation after 1 year. If your probation is more than 3 years, you can petition for termination of probation after 2 years.

If you are on probation to the California Medical Board, you can petition to modify your terms and conditions after 1 year on probation.

Practicing medicine with the restrictions imposed by the Medical Board can have an adverse impact on your medical practice. If you have already entered into a stipulation and want to see about terminating your medical license probation or modifying the current terms, contact a well qualified California Medical License Attorney.

The California Medical Board is looking to place Sandeep Kapoor and Khristine Eroshevich on temporary suspension while they are out on bail in the Anna Nicole Smith case. According to court documents, the California Medical Board wants to prevent Dr. Kapoor and Dr. Eroshevich from practicing medicine while their criminal case is pending. Both Dr’s Kapoor and Eroshevich have been criminally charged and have a case pending in Los Angeles County Superior Court.

The Medical Board of California states in their legal papers that “waiting for a possible conviction to a take action puts the public at risk.” In addition to seeking a temporary suspension, the medical board wants the doctors to give up their prescriptions forms.

Attorney General Edmund G. Brown Jr. has filed criminal charges against the former manager of a Mount Shasta-based medical clinic who filed "bogus claims" under Medi-Cal for medical services that were never performed.

Denise Fairhurst, of Redding, was arrested Wednesday on five criminal counts of grand theft, insurance fraud and submitting false claims to the government. She is being held on $1 million dollar bail.

"Fairhurst ran a health clinic that was losing money and in danger of closing because of widespread financial mismanagement," Brown said. "To keep her operation afloat, she submitted bogus claims to Medi-Cal and in the process violated California law."

Brown's complaint, alleges that between January 2004 and December 2007, Fairhurst, billed Medi-Cal $2.2 million for services not rendered to beneficiaries to help pay operation and management. In addition, Fairhurst used $33,492 of the funds to pay personal credit card bills. If convicted, Fairhurst faces up to five years in state prison.

Ira Messing, 61 owner of Hall of Fame Design and Remolding was sentenced to 3 years and 4 months in prison and ordered to pay $845,000.00 in victim restitution. Messing plead to 15 felony counts of diverting construction funds when he contracted with 15 homeowners to install sunrooms in their homes. Instead of using the money to complete the construction projects, Messing used their money to complete older jobs.

Messing was arrested in Kansas and waived extradition to Orange County where he was sentence.

Dr. Brian West, of Huntington Beach will lose his California Medical License next month after allegations of negligence and a “pattern of dishonesty.” West, who performed surgeries throughout Southern California declined to comment.

Dr. West is accused of gross negligence in a 2000 breast cancer breast reconstruction. The patient had a mastectomy on one breast and wanted Dr. West to perform a lift on her other breast to match. According to reports, West reduced her breasts from D cups, leaving one a C cup and the other a B cup. The patient says she did not give West permission to reduce her breast size. The California Medical Board agreed with the patient.

In addition, Dr. West was arrested for suspicion of DUI in 2000. In this case, West was on his way to see a patient in the hospital when he was involved in a traffic accident. West had a BAC of .19. When questioned by a California Medical Board investigator, West denied he was on the way to the hospital despite a letter of apology he had written to the patient admitting he was.

In 2005, West was placed on probation following two convictions for VC 23152 (a) & VC 23152 (b)- driving under the influence as well as dishonesty. Due to lack of acknowledgment to his errors and the breast patient dishonesty, the board decided to revoke his license rather than extend probation.

California Attorney General Edmund Brown Jr. filed charges against 6 people working with “We Care” hospice in Sherman Oaks. Included in those who had arrest warrants issued were two California physicians, and the owner of “We Care.” All defendants are to appear in Los Angeles Superior Court. If convicted on all counts, the defendants could receive up to nine years in prison.

The six individuals were involved in getting healthy seniors to be admitted into a hospice for terminally ill and then bill the California and the Federal Government for procedures never performed. The total the six individuals were responsible for billing $9 million and used the money to purchase homes and cars. The Delmendo family alone spent $1.7 million cash for a luxury home.

Of those arrested were:

Milagros Delmendo, 58, of Northridge and the owner of “We Care.” She was charged with four counts of grand theft, presenting false Medi-Cal claims, making fraudulent claims to the government, and paying unlawful remuneration.

- Kristina Delmendo Deguzman, 31, of Northridge and daughter of Milagros Delmendo. She was charged with three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government.

- Mark Delmendo, 28, of Studio City and son of Milagros Delmendo. He was charged with three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government.

- Nolan Jones, M.D., 60, of Los Angeles, on three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government.

- Anselmo Alliegro, M.D., 78, of Dundalk, Maryland, on three counts of grand theft, presenting false Medi-Cal claims, and making fraudulent claims to the government.

- Ramon Parayno, 46, of Studio City, on two counts of grand theft and paying unlawful remuneration.

Howard K. Stern, Dr. Khristine Eroshevich and Dr. Sandeep Kapoor were charged with “engaging in a criminal conspiray to illegally furnish” controlled substances to Anna Nicole Smith.

Over a period of three years, Dr. Eroshevich and Dr. Kapoor falsified prescriptions and furnished thousands of prescription pills to Smith, often for no legitimate medical purpose. Howard K. Stern funneled those medications to Anna Nicole Smith.

Eleven felony counts were filed Thursday by the Los Angeles County District Attorney's Office. It is unknown whether the California Medical Board has initiated any independent investigation on the doctors.

Counts 1-3: Each defendant was charged with conspiracy counts for prescribing, administering, and dispensing controlled substances to an addict; obtaining a controlled substances by fraud, deceit, or misrepresentation; obtaining a controlled substance by false name or address; issuing a prescription that is false or fictitious; and repeatedly and excessively prescribing, furnishing, dispensing, or administering drugs.

Count 4: Howard K. Stern and Dr. Kapoor were charged with unlawfully prescribing a controlled substance.

Count 5: Howard K. Stern and Dr. Eroshevich were charged with unlawfully prescribing a controlled substance.

Count 6: Dr. Kapoor was charged with obtaining a prescription for opiates by fraud, deceit, or misrepresentation.

Count 7: Dr. Eroshevich was charged with obtaining a prescription for opiates by fraud, deceit, or misrepresentation.

Count 8: Dr. Kapoor was charged with obtaining a prescription for opiates by giving a false name or address.

Count 9: Dr. Eroshevich was charged with obtaining a prescription for opiates by giving a false name or address.

Count 10: Howard K. Stern and Dr. Kapoor were charged with prescribing, administering, or dispensing a controlled substance to an addict.

Count 11: Dr. Eroshevich was charged with prescribing, administering, or dispensing controlled substances to an addict.