Long Beach Dockworker Pleads Guilty To Billing Insurance For Sex Work

LONG BEACH, CA — A Long Beach dock worker pleaded guilty Tuesday to a federal charge of allowing phony claims to be submitted to his labor union's health plan for the use of prostitutes under the guise of chiropractic services.

Cameron Rahm, 39, of Pico Rivera, entered his plea to a federal charge of conspiracy to commit health care fraud, according to the U.S. Attorney's Office.

Sentencing was scheduled for April 25.

Previously, Rahm was the only defendant out of the 10 named in the case who fought his charges. Tuesday morning Rahm joined the nine other defendants, seven of whom were dockworkers, who all pleaded guilty last September for their roles in a conspiracy to bill an insurance company for more than $2 million in sexual services, according to the Department of Justice.

In some instances, the dockworkers paid for sex by authorizing their insurance company to be fraudulently billed for chiropractic services for their children and spouses, according to federal prosecutors.

According to the indictment, a text message from Rahm to the conspiracy's ringleader Sara Victoria from August 2020 read:

“Heard the Columbian is in today haha. Would I be able to use my wife’s? I know it’s last minute.”

From January 2017 to August 2021 Victoria, 46, of San Pedro operated three businesses that offered chiropractic services, acupuncture treatments and also sexual services, according to the indictment. Victoria recruited and hired women through referrals and from strip clubs in the Long Beach area.

Victoria agreed to pay cash kickbacks to the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan members in exchange for authorization to submit the claims, according to prosecutors. In total, approximately $2,110,920 was submitted to the insurance plan and Victoria was paid approximately $551,810 from the plan, the indictment states.

"Victoria knew that dock workers and others involved in the shipping industry in Long Beach had health insurance under the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan," the Department of Justice said in a written statement. "This plan generally covered all chiropractic services with no deductible and without requiring plan members to contribute any copay amount or out-of-pocket services."

Victoria is expected to be sentenced in April and will face a maximum sentence of 12 years in federal prison according to the Department of Justice.

City News Service contributed to this report.

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