A judge ordered four people convicted of insurance tax fraud to stay at an Orange County jail while they await sentencing on the charges. The four, ages 58 to 67, are former employees of Unity Outpatient Surgery Center in Buena Park who failed to report millions of dollars of income and filed false tax returns, Annenberg TV News reported. One of the employees, suspended attorney Roy Chester Dickson, was also accused of creating false documents to hide patients recruited to the hospital illegally, and he reportedly deposited a large amount of money into his personal account.
In all, the four former employees were convicted on 24 counts and acquitted on 11 counts of insurance tax fraud. The article stated the jury agreed mostly on the counts regarding personal income tax fraud, but had mixed verdicts on the corporate tax fraud charges.
The Los Angeles Times reported that besides Dickson,, the three other former hospital employees were an accountant and two medical administrators. The fraud scheme totaled $154 million, and involved a plan "in which hundreds of healthy patients were recruited to undergo unnecessary and dangerous surgeries" so the hospital could fraudulently bill medical insurance providers, the article stated.
The Times also said that three doctors have pleaded guilty to charges relating to conspiracy and insurance fraud.
The four convicted men face maximum sentences that span three years and eight months to more than eight years. The Times said the sentences call for the four to serve time in California state prison. However, California's prison realignment program now requires non-violent criminals to serve sentences in local county jails to alleviate overcrowding in state-run facilities. Counties across California, including Orange County, have reported being burdened by the program, which is requiring local law enforcement agencies to hire more correctional officers or build more jail space to handle the increase in inmates.
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