Former Owner of Cosmetic Clinics Admits Bilking Insurance for $20 Million

The former owner of a group of health spas and clinics in the San Fernando Valley pleaded guilty Tuesday to her role in a $20-million healthcare fraud scheme that involved Botox injections and laser hair removal, according to federal investigators.Patients at the health spas and clinics were asked to hand over their insurance information, even though the staff and owner knew the cosmetic procedures would not be covered by the patients’ insurance providers.
Roshanak Khadem, 54, also known as “Roxy” and “Roxanne,” arranged the scheme and submitted over $20 million in false claims along with four other co-defendants, according to federal prosecutors.On Tuesday, Khadem pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of subscribing to a false income tax return, according to federal prosecutors.Read more at Los Angeles Times >>