Dockworkers billed medical insurance for sexual services, federal prosecutors say – KIRO 7 News Seattle

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LOS ANGELES — The Department of Justice filed federal charges against nine individuals who they are saying were a part of a plan to submit fraudulent claims to medical insurance for sexual services or for physical therapy that never happened.

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In a news release, federal prosecutors said the group’s ringleader was Sara Victoria, who from January 2017 to August 2021 owned and operated three businesses within the Los Angeles area that offered chiropractic services and acupuncture treatments in addition to sexual services.

Prosecutors said that Victoria knew that dockworkers had medical insurance from the International Longshore and Warehouse Union—Pacific Maritime Association profit plan, which covers all chiropractic services with no deductible, copay, or out-of-pocket expenses.

Investigators said within the news release that Victoria hired women from strip clubs to supply sexual services to dockworkers. In exchange for sexual services for themselves and their friends, ILWU-PMA plan members are accused of authorizing Victoria to submit false claims for reimbursement for chiropractic care and physical therapy.

Investigators said that in total, Victoria submitted $2,110,920 in claims, for which the plan paid roughly $551,810.

Victoria was also charged with agreeing to pay a number of the dockworkers money in exchange for submitting the false claims to insurance, KTLA reported.

Victoria pleaded guilty to conspiracy to commit health care fraud and aggravated identity theft and faces as much as 12 years in federal prison, the Los Angeles Times reported.

The entire dockworkers charged within the scheme accepted plea agreements, apart from one who has pleaded not guilty, in accordance with the Los Angeles Times.

Cameron Rahm, a longshoreman and member of the dockworker’s union, was indicted on conspiracy to commit health care fraud, health care fraud, and making false statements to federal investigators, KTLA reported. If found guilty, he faces a maximum sentence of 15 years in prison.

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