2 Accused of Running Workers’ Comp Fraud Ring

Two men were arrested Thursday and charged with running a workers’ compensation insurance fraud ring that state investigators say has bilked insurance companies and doctors of millions of dollars.

Michael Phillip Fleder, 30, of West Hills is charged with 56 counts of insurance fraud and 19 counts of grand theft. He is expected to be arraigned today.

The other suspect was identified as Paul Stanzione, 27, a claims examiner for Republic Indemnity Co. in San Diego. He is charged with 21 counts of insurance fraud and nine counts of grand theft and is also due to be arraigned today.

According to court documents, Stanzione referred workers’ compensation claimants to doctors working under agreements with Fleder’s companies. The claimants received legitimate treatment from the doctors, who in turn sent claims to Fleder’s companies, Falcon Medical Services and Medical Specialist Group, both based in Malibu, the documents allege.

Fleder’s firms then created inflated bills to submit to Republic for payment, or submitted additional, phony bills, according to court documents.

A spokesman for the state Department of Insurance said Fleder is also believed to have defrauded doctors by withholding insurance payments intended for them.