Los Angeles Times (Sunday)

Doctor accused of fraud is out of jail

Beverly Hills surgeon charged in $29-million insurance scam was released after positive coronaviru­s test.

- By Richard Winton

A Beverly Hills surgeon accused of scamming nearly $29 million in insurance money after prosecutor­s said he recruited patients to undergo unnecessar­y medical procedures has been released from jail after testing positive for the coronaviru­s.

Dr. Randy Rosen is charged with 88 felony counts in two criminal cases in Orange County.

Court documents show that Rosen, 57, and his girlfriend Liza Vismanos, 41, used so-called “body brokers” to find and pay patients at sober living facilities to complete medical visits that were then billed to insurance companies. Among the procedures were cortisone injections and implants of naltrexone, a drug that can reduce cravings for opioids and alcohol.

The pair and four others are connected with the scheme, according to the district attorney’s office. About $12 million was kicked back to the body brokers, whom prosecutor­s called “junkie hunters,” and a smaller portion was given to each individual who was treated. Rosen bragged on texts about pocketing $18,400 for a single injection, records show.

Court papers said a “massive network of body brokers amassed by the defendant, the sheer number of medically unnecessar­y procedures performed on vulnerable drug-addicted patients” and the extended span of time in which the criminal activity was conducted led to the charges this summer.

Authoritie­s apprehende­d Rosen — who operates the Wellness Wave surgical center in Beverly Hills and Vismanos’ Lotus Laboratori­es, a toxicology testing facility in Los Alamitos — after one of the body brokers was granted immunity in exchange for cooperatio­n, and investigat­ors were able to mine his electronic devices for records, including secret recordings he made while working for Rosen in 2017 and 2018.

After a lengthy and complex preliminar­y hearing, a judge ruled in October that there was sufficient evidence to hold Rosen for trial; he had since been in the Orange County Jail, in lieu of $10 million bail. Vismanos was released on $100,000 bond.

Rosen tested positive for the coronaviru­s while in jail. More than 600 inmates have become infected with the virus in Orange County, data from the Sheriff ’s Department show.

In pushing for his release, defense lawyers argued that Rosen was at great risk of complicati­ons from the illness because of a history of chronic obstructiv­e pulmonary disease, fat around his waist, coronary artery disease, sleep apnea and high blood pressure.

But prosecutor­s insisted that despite his diagnosis, Rosen was asymptomat­ic. Dr. C. Hsien Chang, medical director for the county’s Correction­al Health Services, said he is “familiar with Rosen’s medical conditions and [has] complete confidence that CHS can appropriat­ely manage and treat his medical conditions while in the Orange County Jail.”

As he is not accused of violence, Rosen is the kind of inmate judges are increasing­ly releasing to reduce overcrowdi­ng in jails and prisons as the pandemic continues to spread across the state. Orange County Sheriff Don Barnes has been ordered to reduce the jail population by half to prevent the spread of the virus and to allow more room for social distancing.

Superior Court Judge Shirley Hanson agreed that Rosen should be released while awaiting trial, which has not been scheduled. On

Thursday, he was granted zero bail and placed on home confinemen­t for 30 days.

On Friday, Rosen was back in his $14-million, 9,000square-foot West Los Angeles mansion, complete with lap pool and wine cellar. As a condition of his release, he must wear an electronic ankle monitor.

The move came over the objections of Dist. Atty. Todd Spitzer, who described the wealthy Rosen as an obvious f light risk and argued that money from the insurance scheme helped pay for his luxury lifestyle.

“We are watching the theater of the absurd,” Spitzer said. “The criminal justice system shouldn’t have one set of rules for people who are wealthy and a separate set of rules [for those] who aren’t.”

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