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15 medical professionals indicted in $25M scheme

Published on NewsOK Modified: June 24, 2014 at 8:27 pm •  Published: June 24, 2014
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LOS ANGELES (AP) — Fifteen doctors, pharmacists and others medical professionals in Southern California have been charged in a $25 million workers' compensation scam that prosecutors say was linked to the death of a baby.

Recently unsealed indictments allege that Kareem Ahmed, who heads the workers' compensation claims management firm Landmark Medical Management, hired pharmacists to produce a pain-relief cream, gave kickbacks to doctors and chiropractors to prescribe it, and also conspired to submit phony claims.

A coroner's report said a 5-month-old boy in Los Angeles County ate the cream and died. Ahmed, pharmacist Michael Rudolph and Dr. Andrew Jarminski have been charged with involuntary manslaughter. In addition, the parents of the baby are suing over his death.

Prosecutors also alleged insurance fraud and conspiracy in the 44-count indictment, with crimes occurring from Oct. 1, 2009, through Jan. 31, 2013. Kickbacks to individuals were as high as $8 million over multiple years, the indictment says.

Ahmed, a major campaign donor to President Barack Obama, is accused of paying doctors more than $25 million between June 2010 and December 2012 to dispense the creams manufactured by pharmacists Ahmed had contracts with.

The indictment says Jarminski was paid more than $1.9 million and Rudolph more than $1 million in kickbacks. Attorneys for Rudolph and Jarminski didn't immediately respond to requests for comment.

Ahmed's attorney, Richard Moss, denies Ahmed did anything illegal and said he's confident his client will be exonerated.

Moss said the medications were lawfully prescribed by doctors, filled by licensed pharmacists, and compounded appropriately by licensed pharmacists. He said his client's company dealt with the claims to collect on the prescriptions.

Moss said the death of the child was a tragedy but it was "outrageous" to blame the doctor, pharmacist and the head of the company dealing with the workers' compensation insurance claims. Moss said he plans to challenge the legal sufficiency of the case.

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