The lawsuit alleges that the defendants engaged in a complicated scheme that was designed to take advantage of Farmers and the workers’ compensation system, in at least 155 fraudulent claims. As alleged in the complaint, the defendants knowingly charged a rental price for the durable medical equipment that exceeded the manufacturer’s suggested retail price, which is prohibited. It further alleges that the defendants paid doctors an incentive to write prescriptions, including back-dated prescriptions and prescriptions where the duration was blank, so that the defendants could bill continuously.
“Fraud is not a victimless crime, it affects us all. Farmers continues to take aggressive action against those submitting false insurance claims to protect customers and stop fraud,” said Sean Zavala, Director of Special Investigations for Farmers Insurance. “Our Special Investigative Unit is trained to detect this type of alleged fraud and prepared to protect the public by filing cases to stop it from continuing.”