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F.V. business owner faces felony charges related to alleged $20-million healthcare insurance fraud scheme

Bradley dean groscost booking photo.jpg
Bradley Dean Groscost, 59, faces felony charges related to an alleged insurance fraud scheme involving his Fountain Valley business, prosecutors say.
(Courtesy of Orange County district attorney’s office)

Two men associated with a Fountain Valley business face multiple felony counts of insurance fraud, money laundering and unlawful referrals in connection with what prosecutors say was a kickback referral scheme that bilked insurers out of more than $20 million.

Bradley Dean Groscost, 59, operated five workers’ compensation clinics across Southern California through his Fountain Valley-based DSJ MGT Inc. from 2014 to 2017, according to prosecutors. In the process, he was controlling treatments, referrals and medical and financial records, despite not being licensed to practice medicine, prosecutors said.

State and federal insurance investigators allege that Groscost, a Westminster resident, received more than $2 million in kickbacks from fellow defendant Felix Koltsov, 57, of Beverly Hills in referring patients for urine drug screenings and prescriptions from Koltsov’s San Bernardino-based clinical lab and pharmacy.

Groscost faces 54 felony counts related to insurance fraud and tax evasion, with sentencing enhancement allegations of aggravated white-collar crime over $500,000, court records show.

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He was taken into custody Friday and released Tuesday on $500,000 bond, according to Orange County Jail records. He has not entered a plea. He has a court date scheduled for Feb. 18, court records show.

Authorities also allege Groscost failed to report employees to the state and paid them as independent contractors, hiding more than $5.1 million in wages and dodging more than $510,000 in taxes.

Officials said Groscost owed the state Employment Development Department more than $1.6 million in taxes, interest and penalties as of July.

Koltsov faces 39 felony counts, along with enhancement allegations, court records show. He surrendered Jan. 22 and pleaded not guilty to all charges, according to authorities and court records. He was released the same day on $500,000 bond, prosecutors said. He is scheduled back in court March 30, court records show.

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“These fraudulent workers’ compensation claims funnel resources away from injured workers and make it more difficult to provide the treatment to those workers who truly need it,” Orange County District Attorney Todd Spitzer said in a statement Tuesday.

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