Woman Indicted in Kickback Case

An agent for a medical diagnostic firm was named in a 13-count indictment in Los Angeles Wednesday charging her with conspiracy in a multimillion-dollar medical insurance kickback scheme that preyed on the elderly.

Catherine Brouwers, 28, of Huntington Beach was ordered to appear for arraignment today in federal court on the charges, Assistant U.S. Atty. Brian Hennigan said.

He said other indictments may follow in the alleged scheme that began in November, 1984, and ended recently.

The indictment accused Brouwers, marketer and promoter for American Medical Diagnostics, of offering and paying kickbacks to four chiropractors and two owners of a health club for referring patients to her firm for medical tests.

The kickbacks involved millions of dollars and involved thousands of elderly patients covered by Medicare, Blue Shield, Transamerica Occidental Life and other private insurance companies, the indictment says.

The patients were referred to the Montclair and Encino offices of American Medical Diagnostics and several other companies, all owned by brothers David and Michael Smushkevich, according to the indictment.

The laboratories operated by the brothers performed blood and circulation tests at the chiropractors’ offices and the health club in return for $100-an-hour rent for office space and 25% of the insurance proceeds, Hennigan said.