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MedLaw is the code name for a statewide investigation, initiated by Sacramento based agents of the FBI, the IRS and the California Department of Insurance, into the payment of kickbacks and other fraudulent practices in connection with personal injury claims submitted to insurance companies. The most recent arrests bring the total number of MedLaw defendants lawyers, doctors, chiropractors and administrators to 29.
This includes the ten individuals most recently charged. These ten defendants were involved in the payment or receipt of $2.7million in fraudulent kickbacks. In addition, nine of these ten are accused of failing to declare in excess of $3.9 million in income to the Internal Revenue Service. Overall kickback figures for the 29 individuals charged thus far translate into over $153.6million in insurance claim payments tainted by fraud. The total amount of unreported income for all defendants charged with tax violations in the project thus far is in excess of $10 million.
The MedLaw project investigation is not over yet. Because of the many potential targets, investigation has been transferred to the Central and Southern Districts US Attorney’s Offices, the FBI and the IRS for the Central and Southern District of California. The most recent arrests were the result of cooperation by lawyers and administrators included in the earlier round of MedLaw charges.
Those recently charged include:
- Ronald Rutiz, 52, an attorney residing in Pacific Palisades, California. Rutiz was accused of defrauding insurance companies and his clients out of approximately $799,000 in kickbacks from medical providers. He is also accused of failing to report approximately $1,311,000 in taxable income. Rutiz had pled guilty to both counts.
- Keith McKeown, 46, an attorney residing in Beverly Hills, California, was accused of defrauding his clients and insurance companies of approximately $408,000 by obtaining kickbacks from medical providers. He is also accused of failing to report approximately $1,211,000 in taxable income. McKeown has pled guilty to both counts.
- Fe Daphne Olilang, 55, an attorney residing in Cerritos, California, was accused of defrauding her clients and insurance companies out of approximately $333,000, which she received as kickbacks from medical providers. She is also accused of failing to report approximately $316,000 of taxable income. Olilang has pled guilty to both counts and has been sentenced.
- David Anderson, 37, a chiropractor residing in San Diego, California, is accused of paying approximately $83,900 in kickbacks to attorneys in exchange for cases and of failing to report approximately $176,000 in taxable income.
- Violetta Vicencio, 46, a medical doctor residing in Palos Verdes, California, was accused of paying approximately $275,000in kickbacks to attorneys in exchange for referral of cases to her. Vicencio has pled guilty.
- Julie Allen, 52, an attorney residing in Tustin, California, was accused of obtaining approximately $206,000 in kickbacks from medical providers in exchange for referring cases to them and off ailing to report approximately 206,000 in taxable income.
- Michael Clarke, 46, an attorney residing in West Hollywood, California, was accused of receipt of approximately $105,000 in kickbacks from medical providers in exchange for referral of cases to them and of failing to file tax returns on approximately $142,000 in taxable income.
- Benjamin Balerezo, 42, a resident of North Hollywood, California, was charged with defrauding his clients and insurance companies out of approximately $343,900 in kickbacks for referring of clients to medical providers and of failing to report approximately $711,000 in taxable income.
- Bruce E. Blakely, 43, a chiropractor residing in Poway, California, was accused of failing to report approximately$86,000 in taxable income.
- Jason Alami, 39, an administrator residing in Bell Canyon, California, was accused of aiding and abetting in defrauding his law office’s clients out of approximately $150,000 in kickbacks received from medical providers.
Individuals charged with mail fraud are facing maximum sentences of five years in prison and a $250,000 fine and those charged with tax fraud face an additional maximum of three years imprisonment.
It is expected that additional charges will be filed against several more individuals in the near future. The eventual total of MedLaw arrests is expected to hit the 100 mark.
Cases have been investigated by agents of the Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service and the California Department of Insurance.
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