The California Department of Insurance (CDI) and the Santa Cruz County District Attorney’s Office have concluded a two-year joint investigation into alleged fraudulent activities conducted by Action Wellness Center in Santa Cruz County resulting in guilty pleas and fines paid by Jeff and Martha Levine for insurance fraud.
Jeff Levine, 46, and his wife Martha Levine, 40, were allegedly billing insurance companies for services not rendered by their company, Action Wellness Center.
Jeff is the chiropractor and owner of Action Wellness Center and Martha is the business manager for the chiropractic office. The investigation revealed the Levine’s contracted a masseuse who performed massages at her residence for Action Wellness Center’s patients. Action Wellness Center then allegedly billed insurance companies for office visits that never occurred claiming the office visits were in conjunction with the massages. Frequently, the dates of treatment were allegedly altered so the insurance companies would pay the bills. The billings were for patients who had claims for workers’ compensation injuries and patients who had vehicle accident injuries.
The Levine’s agreed to pay restitution for reported insurance fraud crimes committed at their business and pled guilty to 10 counts of insurance fraud. Action Wellness Center paid $16,744 in fines and restitution to the victim patients, insurance carriers, and to the County of Santa Cruz.
In addition, the Levine’s reimbursed CDI’s Fraud Division $45,000 for investigative costs.
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