Securities: Doctors Charged in $30.5 M Surgery Scam

Three doctors were charged on Wednesday because they allegedly participated in a "rent-a-patient" scam that cost investors millions of dollars. Prosecutors say that Unity Outpatient Surgery Center found patients from across the country. These patients then underwent unnecessary surgery for money or low-cost cosmetic procedures. Dr. Michael Chan, an obstetrician from Cerritos, Dr. William Hampton, a surgeon from Seal Beach, and Dr. Mario Z. Rosenberg, a gastroenterologist, were arrested on Wednesday. Bail for the men ranged from $1 million to $2.3 million.

SoCal Doctors Charged in $30.5 Million Surgery Scam

Each of the doctors was charged with 47 felony counts, including conspiracy for billing 19 insurance companies $30.5 million after performing unnecessary colonoscopies and surgeries on 940 patients. The doctors could face up to 50 years in jail. Orange County District Attorney Tony Rackauckas said of the hefty charges: "Doctors have a respected position in our community and are entrusted with our health and well-being. Doctors need to know if they commit insurance fraud, they may be trading in their scrubs for prison jumpsuits."