3 men, who prosecutors said rented out $500 machines for $15,000-plus, sentenced

May 05--SANTA ANA -- Three men who carried out a multi-million-dollar overbilling scheme were sentenced to jail Friday after admitting to felony fraud charges.

Jeffrey Edward Campau, Landen Alan Mirallegro, and Abraham Khorshad were ordered to pay more than $8 million collectively in restitution to insurance companies they admitted to defrauding.

Campau, 42, and Mirallegro, 41, were sentenced to a year in jail and five years of formal probation. The two men, both Yorba Linda residents, were also ordered to pay an additional $1.1 million collectively to the U.S. Department of Treasury.

Khorshad, a 65-year-old Beverly Hills resident, was sentenced to nine months in jail followed by three years of formal probation.

According to Orange County Superior Court court records, the men will be allowed to apply for electronic monitoring, which would let them serve their sentences under home confinement rather than in county jail.

"We appreciate the careful analysis and extraordinary circumstances that made probation and house arrest the right call," said Paul S. Meyer, Campau's attorney. "This was an exceptionally complicated case."

Beginning in 2005, the three men ran Aspan Medical Resources, which rented out medical equipment that prosecutors described as being "similar in function to an ice pack or heating pad."

The machine had hot and cold modes meant to alleviate patients' inflammation or pain.

Over eight years, prosecutors alleged, the three men over-billed insurance carriers by renting out the machines for as much as $15,500 to $18,000 per patient. The machines were actually valued at less than $500.

Of the $70 million dollars in claims the three men submitted to a variety of companies, they were paid more than $10 million, the Orange County District Attorney's Office said.

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