Massage Business Owners Pleads Guilty in Insurance Scheme

28 February 2007

A Glendale, Calif., skin care and massage business owner has plead guilty after California Department of Insurance (CDI) investigators found she was filing claims for acne and chiropractic treatments when her clients were getting facials and massages.

Robyn Alexandre, 31, pleaded guilty to one count of insurance fraud and one count of false tax returns as part of a plea agreement with the Los Angeles County District Attorney's Office. Alexandre will serve 52 non-consecutive weekends in county jail or in a private facility and pay $257,171 to the Franchise Tax Board. Alexandre was also ordered to pay $454,000 in restitution to Blue Cross, Aetna, Blue Shield, and Health Net insurance companies on a percentage of their losses.

On Oct. 26, 2006 Robyn Alexandre, 31, was arrested on a felony arrest warrant charging her with 19 counts of insurance fraud, six counts of false tax returns, four counts of grand theft, and one count of money laundering. Alexandre was the owner and operator of a business called the New Life Skin Center located in Glendale. According to investigators, she provided her customers with facials and massages that would normally cost $45 to $65. However, she was charging the same customers' insurance companies $250 or more for intrusive acne surgery and/or chiropractic treatments she did not provide. Alexandre employed a licensed physician in an attempt to create a legitimate medical facade for her business, CDI said.

A Health Net Insurance Co. investigator uncovered Alexandre's fraudulent billing practice. The investigation and successful conclusion involved the collaborated efforts of the CDI Fraud Division, Valencia Healthcare Team; the Franchise Tax Board; Blue Cross, Blue Shield, Aetna and Health Net insurance companies; the Los Angeles County District Attorney's Office Interdiction Unit and the resources of the National Insurance Crime Bureau.

Source: CDI

Source: insurancejournal

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