Beverly Hills Surgeon Pleads Guilty To $38M Insurance Scheme

BEVERLY HILLS, CA — A Beverly Hills surgeon pleaded guilty Friday and was sentenced to ten years in prison for a $38,000,000 insurance fraud scheme that involved recruiting patients at sober-living homes for unnecessary surgeries and procedures, the Orange County District Attorney's office reported.

Dr. Randy Rosen pleaded guilty to eight felony counts of insurance fraud and two aggravated white collar crime enhancements for a loss over $500,000 in two separate cases. His girlfriend, Liza Vismanos, also pleaded guilty to insurance fraud.

Rosen will face ten years behind bars, though he will get credit for the two years he has already served starting when he was arrested in 2020.

Rosen ran Wellness Wave, a surgical center in Beverly Hills, while Vismanos owned Lotus Laboratories, a toxicology lab in Los Alamitos.

RELATED: Beverly Hills Doctor Charged In Alleged $52M Fraud Scheme

Prosecutors accused the couple of billing health insurance companies roughly $676 million for medical procedures and tests, and collecting millions in reimbursements in the process, according to court documents obtained by the Orange County Register.

Rosen was ordered to pay $9.1 million in restitution, according to the OC District Attorney's office.

According to the Orange County District Attorney's office, the case is the largest prison sentence for a provider in California workers’ compensation insurance fraud.

Prosecutors said the couple hired "body brokers" to locate and pay sober-living facility patients to have unnecessary tests, cortisone shots and non-FDA approved Naltrexone implants, a drug that can reduce cravings for opioids and alcohol.

Rosen put his patients under anesthesia for the procedures in order to bill insurance for a major medical surgery at an approximate cost of $80,000 per procedure, court documents said.

According to the Los Angeles Times, the pair paid the body brokers about $12,000,000 and a smaller portion was given to each person who had been treated. Rosen boasted on text message about pocketing $18,400 for a single injection, records obtained by the Los Angeles Times show.

"Per Rosen's records he performed these procedures in as little as one-minute increments with as many as 72 procedures per day," a bail motion for the pair read. "Additionally, Rosen collected blood and urine from his patients, which was processed at Lotus Labs at a cost of approximately $4,000 per day after the procedure with no known medical necessity."

City News Service contributed to this report.