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California Doctor Off to Prison for Scamming State Workers Compensation

In Beverly Hills a physician was sentenced to 10 years in federal prison this week for his part in a wide-spread medical fraud case. The scam involved under-the-table cash payments for patient referrals, which scheduled patients for either fake or unnecessary medical tests. The "tests" were performed at numerous clinics the doctor operated in several counties, including Imperial and San Diego counties.

Doctor Ronald Grusd was found guilty last December by a federal jury in San Diego, of 39 separate felonies, including Mail Fraud, Healthcare Fraud and Conspiracy, and was sentenced Monday by U.S. District Court Judge Cynthia Bashant.

Investigators learned that Grusd’s businesses - Willows Consulting, Inc, and California Imaging Network Medical Group - paid out at least $100,000 in bribes to other doctors for referring workers’ compensation patients to his clinics and no one else.

The patients would receive numerous services, such as lab work, MRI and ultrasound scans, as well as pain medications. Grusd would then bill insurance providers.

During the trial in late 2017, prosecutors were able to prove the bribes involved hundreds of patients. The kickbacks were funneled through Willows Consulting,

Grusd was ordered to pay a $1,000,000 fines by Judge Cynthia Bashant.

This case was one part of a major crackdown on medical insurance fraud, called "Operation Backlash" which began in November 2015. about 40 people - including physicians, attorneys, medical service providers and marketers - have been charged.

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