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University of California alleges $12M health fraud scheme - KSBY.com | San Luis Obispo and Santa Barbara Area News

University of California alleges $12M health fraud scheme

Posted: Updated:
By MICHAEL BALSAMO
Associated Press

LOS ANGELES (AP) - The University of California says nearly $12 million has been stolen in a health care fraud scheme that targeted students through their health plans.

Officials from the nine-school university system said Thursday it is seeking a temporary restraining order and wants a judge to shut down the operation.

University officials say students were offered as much as $550 to enroll in "sham clinical trials" by California Clinical Trials, LLC.

The company's owner did not immediately respond to a call or email seeking comment.

University officials say the students were mainly prescribed pain creams, without any indication they had been examined by doctors. They believe more than 500 students handed over their personal information.

The university says it has notified law enforcement, but didn't respond to a request for additional information.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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