LOS ANGELES
Federal officials stated that a dockworker at the Port of Long Beach plead guilty Tuesday, submitting fraudulent bills to his labor union’s health insurance plan for sexual services or for physical therapy that never was provided.
Cameron Rahm, 39, of Pico Rivera, plead guilty to one count of conspiracy to commit health care fraud. Rahm faces up to 10 years in prison, officials stated. He is scheduled to be sentenced on April 25.
According to his plea agreement, Rahm obtained sexual services from women employed at three businesses: Back to Life Wellness Center LLC and The Chiroman Wellness Center – both based in San Pedro – and the Wilmington-based Waterfront Wellness Center Inc.
These companies offered patients chiropractic services and acupuncture treatments in addition to sexual services.
In exchange for receiving sexual services, Rahm authorized the conspiracy’s leader – Sara Victoria, 46, of San Pedro – to submit false claims to Rahm’s health plan run by his union, the International Longshore and Warehouse Union – Pacific Maritime Association.
The ILWU-PMA benefit plan provided coverage for chiropractic services and generally covered all of the cost with no deductible and without requiring plan members receiving the services to contribute any copay am
ount or incur any other out-of-pocket costs.
From January 2017 to April 2021, Rahm authorized Victoria to submit false claims to the union’s health benefit plan under the name of his wife, who was a plan beneficiary.
Rahm’s false and fraudulent claims that Victoria submitted to the ILWU-PMA plan were for services that were not rendered, including chiropractic and physical therapy services, according to authorities.
Rahm also requested $240 in cash per month from Victoria in exchange for his authorization for Victoria to submit additional false claims for reimbursement to the ILWU-PM
A plan for services not rendered using his and his wife’s insurance information.
Victoria, aided and abetted by Rahm, submitted approximately $178,495 in fraudulent claims to the ILWU-PMA plan for services purportedly rendered to Rahm’s wife, for which the plan paid approximately $30,243.
In December 2022, Victoria pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of aggravated identity theft.
In total, Victoria submitted approximately $2.1 million in claims to the ILWU-PMA plan, for which the plan paid approximately $551,810. Her sentencing hearing is scheduled for April 14.
Four other dockworkers at the Port of Long Beach pleaded guilty to one felony count of conspiracy to commit health care fraud. They face up to 10 years in federal prison at their sentencing hearings which are expected in the coming months.
Three additional defendants – dockworkers at the Port of Long Beach – each plead guilty to one misdemeanor count of theft in connection with healthcare. Each defendant faces a statutory maximum sentence of one year in federal prison.
The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.
Assistant U.S. Attorney Jason C. Pang of the Major Frauds Section is prosecuting this case.