$3.5 Million Insurance Fraud Sends Two California Therapists to the Big House
LOS ANGELES — Two therapists have been arrested on multiple counts of felony health insurance fraud.
Marriage and family therapist Steven Orenstein (57) and licensed speech therapist Erin Kayem (42) stand accused of insurance fraud, conspiracy to commit grand theft, and grand theft. The two are alleged to have billed Anthem Blue Cross for services totalling $3.5 million, services which were never actually provided.
“Health insurance fraud is a multi-million dollar criminal enterprise in California that everyone pays for through higher premiums,” said Insurance Commissioner Dave Jones in a news release by the California Department of Insurance.
Anthem Blue Cross investigators alerted the Department of Insurance once they became suspicious of provider fraud. Working together, department investigators found that something was indeed rotten in Sweden.
Steven Orenstein
Billings for two patients seen at the Brain Enhancement Institute (owned by Orenstein) and the Neurodevelopment Learning Institute (owned by Kayem) were closely examined, and it wasn’t long before things weren’t adding up. In one case, a patient had been seen for 12 sessions but their insurer was billed for 59. In another, a patient had been seen by NLI for 6 sessions but Anthem was billed for 74.
Given their status as out-of-network providers, Orenstein and Kayem were able to distribute bills totaling $3.5 million and collect nearly $1 million. Orenstein was booked at the inmate reception center in Los Angeles, with Kayem booked at Lynwood Sheriff’s Station. Bail rests at $350,000 each and both face up to 65 years in prison if convicted on all charges.
The case is being prosecuted by the Los Angeles County District Attorney’s Office.
This story and the information herein is based on the official press release by the California Department of Insurance.
