The Justice Department charged nine people in southern California Sept. 14 for their involvement in a prostitution ring that billed a union's health plan for sex acts under the guise of chiropractic services and physical therapy.
Sara Victoria operated three businesses in the Los Angeles neighborhoods of Wilmington and San Pedro — Life Wellness Center, Chiroman Wellness Center and Waterfront Wellness Center — that reportedly offered chiropractic services, acupuncture treatments and "sexual services."
The International Longshore and Warehouse Union — Pacific Maritime Association benefit plan covers dockworkers at the Port of Long Beach. The government alleges Ms. Victoria knew the plan covered all chiropractic services with no deductibles, copays or out-of-pocket costs.
She is accused of recruiting and hiring women from local strip clubs to provide the dockworkers with sexual services and then billing those services as chiropractic or physical therapy. She is also accused of paying the dockworkers directly to submit the fraudulent claims in their names or in their family member's names, including spouses and children.
In total, the health plan was allegedly billed $2.1 million for the services and paid out more than $550,000.
Ms. Victoria was charged with one count of conspiracy to commit health care fraud and one count of aggravated identity theft and faces up to 12 years in prison. An ILWU member was also charged, along with seven shipping yard employees.