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Insurers Allege Worker Comp Fraud in Suing Santa Ana Firm

September 04, 1993|James M. Gomez, Times staff writer

SANTA ANA — Attorneys for three insurance companies and an insurance agency have filed suit against the owners of a Santa Ana firm and five physicians in Los Angeles County in a case of alleged workers' compensation fraud.

The suit alleges that Santa Ana-based Sierra Medical Defenders conspired with the doctors to inflate medical bills and charge the insurers for services to injured workers that were never performed.

Pacific Indemnity Co., Federal Insurance Co. and Vigilant Insurance Co. and insurance agency Chubb & Son filed the suit in Orange County Superior Court on Thursday.

Sierra Medical Defenders officials and attorneys in the case were unavailable Friday for comment.

The suit claims that an employee of Chubb & Son referred injured workers seeking workers' compensation to doctors in Beverly Hills, Rolling Hills, Los Angeles and Glendora.

The doctors then allegedly submitted bogus or inflated medical bills to Sierra Medical Defenders, which then changed documents to reflect even higher prices, the suit maintains.

"This case involves a scheme devised and executed by defendants to defraud plaintiffs in overstating and inflating charges for medical services and billing for services not rendered consisting of examinations, evaluations and treatment of individuals," the suit states.

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