A Superseding Indictment was filed against Beverly Hills radiologist Ronald Grusd M.D. by federal prosecutors on July 11. His prosecution is part of the aftermath of Operation Backlash.
The Superseding Indictment contains forty five counts against the Defendants, the Original Indictment contained only eight. The Superseding Indictment now charges violations of federal health care law under the health care fraud statutes. In the Original Indictment, the counts were based on violations of state health care law and brought into the federal sphere by the Travel Act. The Superseding Indictment now charges violations of money laundering, not included in the Original Indictment and now includes allegations of conspiring with Fermin Iglesias, Carlos Arguello, Julian Garcia, and Jonathan Pena, not included in the Original Indictment.
Operation Backlash, has been an extensive FBI-led undercover investigation that revealed a widespread workers’ compensation kickback scheme, including attorneys, doctors and medical providers who referred patients for health services in exchange for money. Operation Backlash was first announced in November 2015 when the initial round of federal indictments was handed down. San Diego chiropractor Steven J. Rigler and San Diego workers’ compensation attorney Sean O’Keefe previously pleaded guilty to federal charges.
Grusd’s practice, California Imaging Network Medical Group, has clinics in San Diego, Los Angeles, Beverly Hills, Fresno, Rialto, Santa Ana, Studio City, Bakersfield, Calexico, East Los Angeles, Lancaster, Victorville and Visalia.
Trial in the case pending against Grusd was set for June 6, 2017. On March 31, 2017, Defendants Grusd, California Imaging Network Medical Group, and Willows Consulting Company rejected a plea offer in this case.
On April 7, his attorneys moved for a continuance, claiming that they did not have sufficient time to prepare his defense. Last December they say they were provided with digital discovery documents by the prosecutors which were placed on a 2 terabyte drive that can hold millions of documents and recordings.
It would appear that the newly filed indictment would provide the defense attorneys with details about the evidence they will face including specific events, dates, times and places.
For example, on page 12 of the 29 page Indictment prosecutors introduce the topic of “Overt Acts” with paragraph 22. The list of Overt Acts is lengthy, specific and detailed, referring at times to emails, presumably contained on the discovery hard drive, and to specific meetings between Grusd and alleged co-conspirators.
Paragraph 22(s) is illustrative of many of the allegations he will face. “In or about March 2015, in a meeting at GRUSD’s Beverly Hills office, GRUSD suggested that it would be “cleaner,” or words to that effect, to pay Jonathan Pena a flat monthly fee instead of per item referred.” These allegations, if true, directly implicate Grusd in the operation of the enterprise.
There are so many specific allegations in the Superseding Indictment, such as the above, as to statistically make a conviction more probable than not. Prosecutors do not need to convince a jury that all of them are true, just some of them, or maybe even just one of them. One “Overt Act” alone may be enough to support conviction of a crime.
The Superseding Indictment also seeks the forfeiture of Grusd’s title to, and interest in an amount of proceeds not less than $206,330.56 in real property located at 14655 Mulholland Drive, Los Angeles, CA 90077, and all appurtenances affixed thereto. Prosecutors filed a Lis Pendens which creates a lien on this real property.
Arraignment is set on the new indictment for 7/27/2017 02:00 PM in Courtroom 2B before Magistrate Judge Jan M. Adler. On that date Grusd’s attorneys intend to ask the Court for a continuance for the start of trial currently scheduled to begin on October 10, 2017 in order to allow them time to prepare a defense to the Superseding Indictment.