Two medical doctors from a North Hollywood clinic were arrested for allegedly participating in a multi-million-dollar health Medicare and Medi-Cal scam that involved homeless people, the Los Angeles city attorney’s office announced. The case involves seven defendants, which include two Dr. Rodney Stephen Barron and Dr. Eleanor Santiago Arthur and four clinic workers from RSB Medical Group Inc. The clinic’s owner, Artur Vic Manasarian, is currently out of custody in a separate federal healthcare fraud case. In the scheme, the doctors and the clinic owner allegedly hired an individual to recruit and drive mentally ill homeless people in a van from various parts across the county to the clinic, which is located on Victory Boulevard. The doctors then allegedly performed abdominal ultrasound procedures on the patients and withdrew blood from them, regardless of their conditions. Medicare and Medi-Cal were later billed for the procedures. Investigators believe the clinic charged up to $1,000 per doctor for between 30 and 50 patients per day between December 2009 and June 2010, when the investigation was conducted. They also allege that blood drawn from patients was often dripped into open jars and packaged for sale. Patients were then transported back to the streets and paid $100 each for participating. By June 2010, the defendants closed office locations and opened others with new names after Medicare stopped paying on the claims, according to the legal complaint. Each defendant was charged with seven criminal counts, which include conspiracy, making fraudulent claims for health care benefits, making referrals for profit and taking illegal kickbacks. Each defendant could face up to seven years in jail if convicted. City Attorney Carmen Trutanich is also seeking full restitution of more than $5 million to Medi-Cal and Medicare, pending further investigation into the clinic’s financial records. The Medical Board of California is looking into revoking the medical licenses of the doctors involved in the clinic. Jessica Vernabe
