Encino Psychiatrist Charged in Fraud Case

An Encino psychiatrist was charged Thursday with conspiracy and mail fraud in connection with an alleged scheme to submit more than $730,000 in false medical bills to Medicare and several private insurance companies.

The 11-count indictment against Joseph Ezra, returned Thursday by a federal grand jury in Los Angeles, alleged that he billed for medical exams and tests that were either not necessary, were never performed or were not performed by appropriately trained technicians.

Ezra, 49, could not be reached for comment. His lawyer, Brian J. Hennigan of Century City, said he had not yet seen the indictment but planned to contest the charges. Ezra, whose office is at 16661 Ventura Blvd., is continuing to practice medicine, Hennigan said.

Ezra’s brother-in-law, Reseda optometrist Chester S. Katz, was a partner in the alleged scheme and has already pleaded guilty to four counts of felony mail fraud, according to the U.S. attorney’s office.

Convicted in October, Katz is scheduled to be sentenced in July.

Ezra and Katz were partners in a business called Reseda Primary Care Services, where patients would be referred for exams or simple medical tests, such as blood tests, Assistant U.S. Atty. Charles L. Kreindler said.

Katz, as an optometrist, had no practical reason to order the tests and also could not legally certify the bills. So Ezra, a medical doctor, used his medical license number when the claims were submitted, Kreindler said.

In some cases, Ezra was not even in the office when the supposed medical exams took place, Kreindler said. Sometimes blood was drawn or other tests performed, but there was no physician present to verify that the work was needed, according to Kreindler. Reseda Primary has since shut down.

“It was done by people not trained in administering the tests or reading the results,” Kreindler said.

The alleged scheme was discovered about four years ago during an Internal Revenue Service audit, which had been prompted by the claims of a disgruntled Reseda Primary employee, Kreindler said.

About the same time, Kreindler said, Blue Cross of California had begun its own investigation of Reseda Primary because of questions from Katz’s patients about copies of bills they were receiving in the mail.

Most of his patients were elderly and eligible for federal Medicare coverage, Kreindler said.