San Diego

A federal indictment unsealed Wednesday charged three San Diego County residents and three Los Angeles County men with an alleged scheme to defraud millions of dollars from various insurance companies, including the civilian health program administered by the U.S. Department of Defense.

The indictment, the product of an extensive federal inquiry, charges the six defendants with mail fraud, conspiracy and making false statements and false claims to the United States.

The allegations arise from health claims submitted by Center City Funding Inc., a San Diego-based billing company operated by Donald D. Bader, 58, and his wife, Minnie Bader, 64, of San Diego, according to U.S. Atty. William Braniff. Minnie Bader, reached at home by telephone, denied any knowledge of the alleged scheme. The company, which also faces civil allegations of investor fraud, declared bankruptcy in September, noted Assistant U.S. Atty. Carol C. Lam.

The indictment charges that the defendants, through Center City Funding, billed various insurance companies, including the Pentagon program, which is known as CHAMPUS, for more than $3 million in largely inflated claims generated by Southern California clinics. Most of the medical tests were performed without any showing of need, the indictment said. The value of each fraudulent claim--submitted between late 1987 through 1988--ranged from $205 to $2,345, the indictment said.

Along with the Baders, those charged were Marie Manuela Souza, 37, office manager for Center City Funding; Max Sperling of Palos Verdes and his two sons, Howard Aaron Sperling, also of Palos Verdes, and Craig Allen Sperling of La Habra. The Sperlings administer billing programs for various Southern California clinics, the indictment said. The Sperlings could not be reached for comment.

If convicted, each defendant faces five years in jail and a $250,000 fine for each count of the 73-count indictment. All are scheduled to be arraigned Thursday.