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Health insurance and prostitution intermingled in a deceitful conspiracy enmeshed in healthcare fraud. Cameron Rahm and other dockworkers from Long Beach California, were involved in a conspiracy to submit false bills to a healthcare insurance plan provided by their labor union. Under the statute in 18 U.S. Code § 1347, the conspirators were charged with healthcare fraud.
The case reported that Rahm and the other dockworkers acquired sexual services from prostitutes who were employed at Back to Life Wellness Center LLC, The Chiroman Wellness Center, and Waterfront Wellness Center. Sara Victoria is deemed the ringleader of the fraudulent scheme as she admitted to owning these businesses from 2017 to 2021. In addition to offering chiropractic and acupuncture treatments, the businesses rendered sexual services to their clients. Victoria employed prostitutes for these businesses and recruited them through strip clubs and referrals within the vicinity of Long Beach.
A text message sent by Cameron Rahm to Victoria revealed his participation in the scheme.
Victoria and the dockworkers plotted the scheme by presenting fabricated bills to the healthcare plan organized by the International Longshore and Warehouse Union – Pacific Maritime Association. The Department of Justice stated that Victoria knew that the dockworkers had health insurance under the labor union. The benefits covered all costs of chiropractic services with no deductible and without requiring the members to contribute any copay amount or out-of-pocket services.
They conspired to take advantage of the system by deceiving the company with fraudulent bills under the pretense of chiropractic services received by their children and spouses. The dockworkers exploited this to pay for sexual services offered by Victoria’s business. In actuality, these bills were forged and the purported services were not rendered. In return for authorizing her to submit falsified claims, Rahm also asked for 240$ of cash every month from Victoria. The fraudulent bills amounted to roughly $2,110,920 and Victoria received about $551,810 from the ILWU-PMA healthcare benefit plan.
Last December 2022, Victoria pleaded guilty to her charges and faced a federal prison sentence that could last up to 12 years in prison. Sara Victoria was charged with one count of conspiracy to commit healthcare fraud and one account of aggravated identity theft. Four other dockworkers who were indicted as co-conspirators were charged with one count of conspiracy to commit healthcare fraud and face a maximum of 10 years in federal prison on their sentence hearings.
Initially, Rahm opposed the charges filed against him which comprised of one count of conspiracy to commit health care fraud, two counts of health care fraud, and one count of lying to federal investigators. Then on January 10, 2023, Rahm pleaded guilty to one count of conspiracy to commit healthcare fraud and faced a federal prison sentence that could last up to 10 years in prison. The sentence hearing of the defendants is set to take place this year from January to April. Jason C. Pang, the Assistant United States Attorney of the Major Frauds Section, is running the prosecution of the case.
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