Feds double estimated losses in Vital Imaging fraud scheme

The U.S. Attorney’s Office recently upped its estimate of losses to nearly $28 million in what it already characterized as “the largest workers compensation fraud scheme in the history of Southern California” when it calculated losses of $14.1 million.

In addition to asking a federal judge in San Diego to sentence Sam Solakyan to 15 years, prosecutors are also asking the court to order restitution and forfeiture of $27.9 million.

Attorneys for Mr. Solakyan are asking the court to impose a sentence of six months, consistent with federal sentencing guidelines, and in no case longer than 30 months. They also criticized the analysis the government used to estimate losses, saying prosecutors continue “to fling sentencing arguments against the proverbial wall, hoping that one will stick.”

A federal jury in July 2021 convicted Mr. Solakyan on all 12 counts in a 2018 indictment — one count of conspiracy to commit honest services mail fraud and health care fraud, and 11 counts of honest services mail fraud — alleging a scheme to submit more than $250 million in bills for services procured through bribes and kickbacks. Solakyan was president and CEO of Vital Imaging Inc. in Glendale.

In December, federal prosecutors asked the U.S. District Court for Southern California to impose a sentence of 188 months in prison. Although the base offense level for the conspiracy and fraud charges for a person such as Mr. Solakyan with no prior convictions indicates a sentence of up to six months under federal sentencing guidelines, prosecutors said additional enhancements for total losses in excess of $3.5 million and other factors support their request for a longer term of incarceration.

The government said a medical expert who reviewed 218 scans found only seven were medically necessary in estimating losses of $14.1 million. At the same time, the government said it extrapolated losses based on utilization review data in accepted cases to calculate losses of at least $4.4 million.

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