2 more doctors indicted in $950M kickback scheme

Two more doctors have been indicted in an ongoing federal investigation into a kickback scheme that approached $1 billion in California.

Jacob Tauber, 66, of Beverly Hills, an orthopedic surgeon, and Serge Obukhoff, 62, of Malibu, a neurosurgeon, were charged for their roles in the scheme, which has been dubbed Operation “Spinal Cap,” the Department of Justice announced.

The two allegedly received illegal kickbacks to influence referral patient to Pacific Hospital.

“These two physicians leveraged vulnerable patients to participate in a fraudulent kickback scheme,” First Assistant United States Attorney Tracy Wilkison said in a statement. “Their scheme violated their oaths as physicians as well as the law.”

Prosecutors describe Operation Spinal Cap as a 15-year scheme involving $950 million in bad billing to the federal government, California and private insurers. It included more than $40 million in illegal kickbacks paid to doctors and other medical professionals to refer patients to Pacific Hospital.

Both Tauber and Obukhoff caused patients with insurance and covered claims to receive surgeries and services at the hospital, which was based in Long Beach, in return for bribes and kickbacks, according to the DOJ.

Tauber was also charge with receiving illicit payments to refer urinalysis specimens to a specific lab.

Amy Baxter

Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."

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