California Chiropractor Gets Decades in Prison in Nine-Figure Workers’ Compensation Fraud Case

In April, the Insurance Journal reported that a chiropractor in California has been sentenced to 54 years in prison as part of a more than $150 million workers’ compensation fraud case. Peyman Heidary—a chiropractor from Riverside County—orchestrated what has been referred to as the “godfather” of workers’ compensation fraud. In this article, our Bakersfield workers’ compensation defense attorneys provide a more detailed overview of this massive workers’ compensation fraud case.

The Sentence: 54 Years for $150 Million Workers’ Compensation Fraud Scheme

Peyman Heidary—a former chiropractor who was based in Riverside County, California—was arrested and charged as part of a massive workers’ compensation fraud scheme. Mr. Heidary was convicted for being the leader of a workers’ compensation fraud scheme that bilked insurance companies out of approximately $150 million. He was charged with multiple felony criminal offenses—dozens of counts in total—including workers’ compensation fraud, insurance fraud, and money laundering. Mr. Heidary has been sentenced to serve more than 54 years in state prison and repay $23 million in financial restitution.

Chiropractor Created Sham Law Firms and Health Clinics

According to the evidence presented by prosecutors at trial, the Peyman Heidary workers’ compensation fraud scheme was comprehensive. Between 2009 and 2014, Mr. Heidary created several sham law firms and several sham health clinics that he used to carry out his operations. Prosecutors demonstrated beyond a reasonable doubt that he used these entities to:

  • Exaggerate patient injuries;
  • Perform medically unnecessary procedures; and
  • Send inflated bills to workers’ compensation insurers.

Mr. Heidary reportedly manipulated the system by using these sham law firms to recruit thousands of legitimately injured patients. He then directed them to his clinics to generate unwarranted and unjustifiably inflated billing. Notably, the deceit not only defrauded insurance companies but also failed to provide real help to the patients. Many injured workers were left without the medical care that they actually needed to recover.

One of the Largest Workers’ Compensation Fraud Schemes in California History

Workers’ compensation fraud remains a big issue in our region. State regulators note that total workers’ compensation fraud losses in California exceed $1 billion each year. The scope and scale of Mr. Heidary’s fraudulent activities make it one of the largest workers’ compensation fraud schemes ever recorded in California. Originally charged with $98 million in fraudulent activities, there were further investigations and additional trial evidence uncovered at trial that proved that the total damage of his workers’ compensation fraud scheme amounted to a staggering $150 million. Authorities in California continue to crack down on abuse of the workers’ compensation system, whether by medical providers, employers, or employees.

Get Help From a Bakersfield, CA Workers’ Compensation Defense Lawyer Today

At Yrulegui & Roberts, our Bakersfield workers’ compensation defense attorneys have the skills and experience to take on all types of workers’ compensation fraud cases. Have questions about your legal options? Contact us right away for a strictly confidential, no obligation initial appointment. Our firm handles workers’ compensation defense cases in Bakersfield, Kern County, and communities beyond.