Dockworkers billed health insurance for sexual services, federal prosecutors say
LOS ANGELES – The Department of Justice filed federal charges against nine people who they say were part of a plan to submit fraudulent claims to health insurance for sexual services or for physical therapy that never happened.
In a news release, federal prosecutors said the group’s ringleader was Sara Victoria, who from January 2017 to August 2021 owned and operated three businesses in the Los Angeles area that offered chiropractic services and acupuncture treatments as well as sexual services.
Prosecutors said that Victoria knew that dockworkers had health insurance from the International Longshore and Warehouse Union—Pacific Maritime Association benefit plan, which covers all chiropractic services without a deductible, copay, or out-of-pocket expenses.
Investigators said in the news release that Victoria hired women from strip clubs to provide sexual services to dockworkers. In exchange for sexual services for themselves and their friends, ILWU-PMA plan members are accused of authorizing Victoria to submit false claims for reimbursement for chiropractic care and physical therapy.
Investigators said that in total, Victoria submitted $2,110,920 in claims, for which the plan paid approximately $551,810.
Victoria was also charged with agreeing to pay some of the dockworkers cash in exchange for submitting the false claims to insurance, KTLA reported.
Victoria pleaded guilty to conspiracy to commit health care fraud and aggravated identity theft and faces up to 12 years in federal prison, the Los Angeles Times reported.
All of the dockworkers charged in the scheme accepted plea agreements, except for one who has pleaded not guilty, according to the Los Angeles Times.
Cameron Rahm, a longshoreman and member of the dockworker’s union, was indicted on conspiracy to commit health care fraud, health care fraud, and making false statements to federal investigators, KTLA reported. If found guilty, he faces a maximum sentence of 15 years in prison.
