Woman gets 10 years in prison for role in 16-state medical fraud scheme
A Costa Mesa, Calif., woman, who authorities say was a “capper” in a $154 million medical insurance fraud scheme, was been sentenced to 10 years in prison.
Sue Nanda, 41, was sentenced Aug. 7, following her February guilty plea to 22 felony counts, including conspiracy, failing to file tax returns, filing fraudulent tax returns and capping, according to the Orange County (Calif.) District Attorney’s Office.
Nanda and eight others were accused of being “cappers” in the scheme, personally recruiting more than 170 so-called patients from 16 different states for unnecessary surgical procedures. The cappers are accused of targeting employees from businesses in 39 states who were covered by PPO insurance plans, affecting more than 1,000 employers whose employees became involved in the scheme, the district attorney’s office said.
As part of California’s Unity Outpatient Surgery Center scheme, $154 million was fraudulently billed to medical insurance companies. To date, 13 of the 19 defendants in the case have been indicted by a grand jury, including an attorney, accountant, three doctors and the patient recruiters, or “cappers.”
The cappers are accused of arranging transportation for the patients, scheduling the surgeries and coaching healthy patients on what to say, according to officials. In exchange for undergoing the unnecessary surgeries, patients received a cash payment, usually between $300 and $1,000 per surgery, or credit toward a free or discounted cosmetic surgery.
The district attorney’s office said Nanda, who had no medical training, assisted patients in filling out surgery center paperwork, including having them sign a false affidavit stating that they had not been offered compensation nor received any compensation in exchange for Unity’s services.
Nanda was paid directly and through corporations she had set up, authorities claim, and will be ordered to pay restitution for personal and corporate taxes. A restitution hearing is scheduled for Dec. 4.
Of the indicted defendants, Dr. William Wilson Hampton Jr., 53, of Seal Beach, Calif., pleaded guilty to 47 felony counts including conspiracy, insurance fraud, and capping and was sentenced to 16 years in state prison earlier this year.
The other six defendants in the Unity case pleaded guilty prior to the indictment and have been sentenced. The remaining 11 defendants are scheduled for jury trial on Oct. 26.


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