A chiropractor charged with recruiting hundreds of employees at Cedars-Sinai Medical Center to participate in a $350,000 insurance fraud scheme surrendered to authorities Thursday.
The state Department of Insurance charged that between 1978 and 1982, Theodore Wyatt submitted hundreds of bills to Blue Cross of California for treatment of the employees. Evidence indicated, however, that most of the "patients" were not being treated by the chiropractor at his Western Avenue office, said chief investigator Ronald Warthen.
Instead, they were being recruited in a scheme to defraud Blue Cross and were being paid with money Wyatt obtained by cheating the insurance company, Warthen said.
During one 16-day period, Wyatt "treated" 230 hospital workers, and during one 11-month period, he billed Blue Cross for 5,031 bogus office visits, the investigator said.