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Doctor Accused of Fraudulent Billing

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A Costa Mesa doctor was indicted Thursday on federal charges of defrauding both a military health-insurance program and a Blue Cross program.

Nagesh Shetty, 53, who is in jail for a prior conviction in a tax-fraud scheme, was named in a 26-count indictment by a federal grand jury in Los Angeles, U.S. Atty. Nora M. Manella said.

The indictment alleges that Shetty billed two insurance providers for services he never rendered and for medically unnecessary services. It claims he fraudulently collected more than $45,000 in fees.

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The indictment also alleges that while several patients saw him simply to have their prescriptions filled or cholesterol levels checked, their insurers were billed for services such as hepatitis and syphilis tests.

Assistant U.S. Atty. Alicia Villareal claimed Shetty even billed Blue Cross for office visits made by a patient who went to the medical office for the sole purpose of complaining about the fraud.

According to the U.S. attorney’s office, Shetty was in custody Thursday at the Metropolitan Detention Center in Los Angeles. Shetty couldn’t be reached for comment.

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