More Providers Charged in Pacific Hospital Fraud Scheme, Compounded Drugs Kickback Scheme

This week, federal prosecutors in Los Angeles indicted several medical providers, as well as an attorney, in numerous scams to defraud Medicare, private health insurers, workers’ compensation insurers and programs, and a military health insurance program.

The grand jury indictment, unsealed by the U.S. Attorney’s Office for the Central District of California, accuses podiatrists Dominic Signorelli of Irvine and Robert Joseph of Huntington Beach, along with attorney Irena Shut of Hidden Hills, of conspiring in a kickback scheme. The indictment charges that Drs. Signorelli and Joseph were paid kickbacks by TYY Consulting — which allegedly made $250 million from the scheme — for prescribing drugs from New Age Pharmaceuticals, Precise Compounding Pharmacy, Roxsan Pharmacy, and Concierge Compounding Pharmaceuticals.

Shut allegedly marketed the scheme for TYY and collectively paid Signorelli and Joseph over $1.2 million through various family members. Concierge allegedly paid off Shut for commissions, and the pharmacies together were paid $175 million by insurers for compounded drug prescriptions. Shut, Signorelli, and Joseph are to appear for arraignments in Los Angeles federal court next month.

In addition, the following providers were charged for alleged involvement in a $1 billion fraud scheme coordinated by former Pacific Hospital owner Michael Drobot:

  • Daniel Capen of Manhattan Beach
  • Timothy Hun of Palos Verdes Estates
  • George William Hammer of Palm Desert
  • Lauren Papa
  • Tiffany Rogers of Palos Verdes Estates
  • Brian Carrico of Redondo Beach
  • William Parker of Redondo Beach