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If a lien claimant is convicted (including guilty plea) of insurance fraud, the lien claimant must go through the lien consolidation process.
The purpose of the lien consolidation process is to identify all liens filed by the convicted provider that were directly related to the fraud.
This process has its own discovery process and generally is a very slow process.
Once the consolidation process is complete, the Special Lien Adjudication Unit is given jurisdiction over the liens identified as being related to the fraud (likely leading to dismissals of all implicated liens).
Thus far, only two consolidation proceedings have been completed (Dr. Mitchell Cohen and chiropractor George Reese).
The U.S. Attorney for the Southern District of California has issued an indictment and arrest warrant against Sam Solakyan, who headed numerous imaging centers in the state tied to fraud allegations. Solakyan allegedly paid $8.8 million in kickbacks for referrals, which were used to bill workers’ compensation payers for $284 million.
The California Division of Workers’ Compensation has dismissed almost 5,000 liens filed by companies associated with Michael R. Drobot, including Industrial Pharmacy Management and California Pharmacy Management. This marks the first major case involving a provision in AB 1244 which requires the DWC to dismiss liens held by individuals convicted of fraud.