San Diego jury convicts Beverly Hills doctor in kickback, insurance fraud scheme

Dec. 15--A San Diego federal jury this week convicted a Beverly Hills radiologist for his role in a massive fraud scheme that involved kickbacks for patient referrals so he could bill insurance companies more than $25 million in unnecessary medical services.

Dr. Ronald Grusd operated California Imaging Network Medical Group, with practices throughout the state, including San Diego, Calexico, Fresno, Santa Ana and Los Angeles.

He and his companies were found guilty Wednesday of all counts against them -- including conspiracy, health care fraud and honest services mail and wire fraud -- following a seven-day trial.

The scheme involved paying bribes to several people, including a primary care physician, to recommend a host of medical services to patients with worker's compensation claims. The referrals were for services such as MRIs, toxicology testing, Shockwave treatments, ultrasounds and prescription drugs, according to prosecutors.

Grusd's practice would then seek reimbursement from insurance companies for the services. Authorities say he and his companies have billed for hundreds of millions of dollars in the state workers compensation system since 2009.

Grusd would pay the kickbacks out of a shell company, Willow Consulting, with checks labeled as "professional services" to hide the bribery, prosecutors said. Evidence at trial showed he paid more than $100,000 in bribes that covered hundreds of patients, prosecutors said.

The jury could not reach a verdict on Gonzalo Paredes, Grusd's administrator. He may be retried.

The case was part of a large crackdown on medical insurance fraud dubbed "Operation Back Lash" announced in November 2015. The U.S. Attorney's Office said nearly 40 people and corporations have been charged with crimes in federal and state court, including doctors, attorneys, medical service providers and marketers.

Four others charged with Grusd and Paredes who were accused of receiving bribes have pleaded guilty and are cooperating with the investigation.

kristina.davis@sduniontribune.com

Twitter: @kristinadavis

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