Podiatrist Schlomo Schmuel, 53, of Sherman Oaks, on Wednesday surrendered to the California Insurance Department on two felony counts of fraud after allegedly inflating bills, according to an announcement from the insurance department.
The resulting loss to an insurer totaled more than $360,000.
“This medical professional allegedly used his position of trust to have unneeded medical treatment prescribed to patients in order to scam hundreds of thousands from insurers,” said Insurance Commissioner Ricardo Lara.
Schmuel operated two businesses: Innovative Orthopedic Solutions and Diamond Orthopedic Services, both in the Los Angeles basin. While running them, Schmuel allegedly double billed for devices called hot/cold units, which are used to reduce pain and swelling after surgery. The department claimed he billed each unit under two industry codes, getting paid twice for each one.
Investigators allege Schmuel also was involved in an unlawful kickback scheme involving the hot/cold units.
Schmuel was booked into the Clara Shortridge Foltz Criminal Justice Center in downtown Los Angeles. The Los Angeles County District Attorney’s office is prosecuting the case.