Former Hollywood doctor found guilty in $355M medical billing scam

A former West Hollywood doctor was found guilty of fraudulently billing insurance companies in a scheme estimated to approach $355 million.

Julian Omidi, 53, and his company Surgery Center Management, which controls the 1-800-GET-THIN Lap-Band weight-loss surgery business, were found guilty of 28 counts of wire fraud and three charges of mail fraud, the Department of Justice announced Dec. 16. Omidi, whose medical license was yanked in 2009, was also found guilty of two counts of making false statements, two counts of money laundering and a single charge of aggravated identity theft.

During the three-month trial, prosecutors presented evidence that Omidi directed employees to alter sleep studies and make it seem that patients were suffering from sleep apnea. Results were then presented to insurance companies and used to pre-authorize lap-band surgeries at centers he owned.

Insurance companies, including Tricare, Anthem Blue Cross, UnitedHealthcare, and others, paid Omidi’s facilities $41 million for the weight-loss procedures. If insurers did not approve surgeries, the company would still bill $15,000 for each sleep study, which amounted to nearly $27 million, the DOJ found. 

Omidi is scheduled for sentencing on April 6 and faces a maximum of 20 years in federal prison for each count of mail fraud, wire fraud and money laundering. He’s also subject to a mandatory consecutive two-year sentence for aggravated identity theft.