Recently, Southern California Public Radio (KPCC) posted a story on its website about an allegedly massive California workers compensation fraud scheme in Orange County. A grand jury in Orange County has indicted 15 individuals who were allegedly participating in a “multi-million dollar workers compensation fraud scheme.”
The group of 15 includes 10 doctors, one pharmacist, and one person who is considered to be a major donor of President Obama’s re-election campaign. The individual who was considered the ringleader of the group, as well as two others in the alleged scheme are facing an additional charge of involuntary manslaughter.
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According to court documents, Kareem Ahmed, the Obama contributor, is accused of:
(1) Hiring pharmacists to produce three “compounded transdermal cream.”
(2) Paying kickbacks to several physicians and chiropractors who agreed to prescribe the creams to their workers’ compensation patients.
(3) Conspiring with the doctors involved to submit falsified workers’ compensation claims.
In total, Ahmed compensated the physicians involved in the scheme in excess of $25 million to dispense these creams between June 15, 2010, and December 31, 2012. According to the indictment, doctors individually received amounts between $600,000 and $2.5 million. Daniel Capen, M.D. was high on the list of pay-outs, receiving more than $2.5 million. Andrew Jarminski, M.D. received more than $1.9 million and pharmacist Michael Rudolph obtained more than $1 million for their involvement with the alleged scheme.
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The radio station involved with this story, KPCC, attempted to reach some of those named in the indictment, but were unable to connect with them. Allegedly, Ahmed was able to make the operation seem legitimate by “requiring the physicians and the pharmacists to sign a contract for the purchase of future accounts receivables.”
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Altogether, there are 44 counts in the indictment. Of those, one is involuntary manslaughter and is being brought against Ahmed, Rudolph, and Jarminski. This charge stems from events occurring on or about February 3, 2012. According to official documents, these three men “did unlawfully and without malice kill Andrew G. (a minor) . . . in the commission of a lawful act which might produce death, in an unlawful manner and without due caution and circumspection.” No other details were given.
Ahmed is currently president and CEO of an Ontario firm called Landmark Medical Management. An assistant to Ahmed emailed a statement for him saying “Kareem Ahmed and his staff are innocent of all charges that have been alleged.” The charges of meritless and we expect full exoneration of any wrongdoing.”
A spokesperson with the Orange County DA’s office stated that she is unable to comment on the indictment because it has been sealed.
If you have questions about a workers’ compensation issue and are seeking counsel, please contact the workers’ compensation attorneys at 702 DEFENSE. We offer free initial consultations in order to meet with you and hear the facts of your case. It is in your best interest to work with an experienced attorney who can guide you through the process and advise you on your best options. Do not hesitate to call us today.
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