California surgeon charged in $600M billing fraud scheme

A California surgeon and five others have been charged with carrying out an elaborate insurance fraud scheme, according to a release from the Orange County (Calif.) district attorney's office. 

Randy Rosen, MD, his girlfriend and four others were allegedly involved in a fraud scheme that involved hiring body brokers to pay patients at sober living homes to undergo medically unnecessary surgeries. He is also accused of requiring patients to undergo unnecessary drug tests which he sent to a laboratory owned by his girlfriend. 

Dr. Rosen was arrested June 30 and is facing 88 federal charges in two separate cases in connection with the alleged fraud scheme. He pleaded not guilty July 2. 

Insurance companies were allegedly fraudulently billed about $600 million through the scheme, and the companies paid out about $50 million, according to the district attorney's office. 

Dr. Rosen is charged with creating documents for purposes of submitting false insurance claims, submitting false insurance claims, withholding material facts on insurance claims, conspiracy to commit unlawful patient referrals and money laundering. 

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