Dockworkers in Los Angeles claimed more than $2.1million in fraudulent health insurance payments that in fact went to strippers to perform sex acts on them, the Fed allege.
Ten people, including eight workers at the Port of Long Beach plus ‘conspiracy ringleader’ Sara Victoria and another woman, have been hit with federal charges over the scam.
Victoria, 46, of San Pedro, was charged Wednesday with one count of conspiracy to commit health care fraud and one count of aggravated identity theft.
According to a plea agreement signed by Victoria, between January 2017 and August 2021, she owned and operated three healthcare businesses that offered patients chiropractic services, acupuncture treatments, and also sexual services.
The California Attorney’s Office allege that Victoria concocted the scheme with the dockworkers as she knew that their health insurance plan covered all chiropractic services with no deductible or out-of-pocket expenses.
Victoria scoured the Long Beach strip clubs for women to recruit to provide sex acts for the dockworkers, who were then reimbursed through the fraudulent invoices that she would file for chiropractic services and physical therapy.
Mastermind Sara Victoria, 46, scoured the Long Beach strip clubs for women to recruit to provide sex acts for the dockworkers, who were paid through the fraudulent invoices. Pictured: The Port of Long Beach in Long Beach where the dockworkers worked
She would also file claims under the names of family members including spouses and children of the dockworkers, none of whom received the services specified.
This allowed the clients to continue to enjoy the services of the strippers even after maxing out the visits covered by their insurance for chiropractic services.
Victoria also paid cash kickbacks to the dockworkers as part of the scheme.
In total, Victoria submitted approximately $2,110,920 in claims to the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan, for which the plan paid approximately $551,810.
Victoria is expected to enter a guilty plea as part of her plea deal, where she will face a statutory maximum sentence of 12 years in federal prison.
Eight other defendants signed plea agreements on conspiracy to commit health care fraud charges.
One defendant charged was Cameron Rahm, 39, of Pico Rivera, a Long Beach longshoreman and ILWU member.
Rahm was one of the customers of Victoria’s businesses, and agreed to have her submit fraudulent claims in exchange for sex acts.
He also allegedly lied to FBI agents investigating this case when he denied allowing anyone to bill his health insurer for sexual services.
If convicted of all charges, Rahm would face a statutory maximum sentence of 10 years in federal prison for the conspiracy and health care fraud counts, and five years in federal prison for the false statements count.