Charges were filed against Max Humberto Matos M.D.,Jeffrey Scott Catanzarite D.C., Ronald Lee Martin and Veronica Martin by Orange County prosecutors . They were released on bail on January 8, and an arraignment is scheduled in Orange County Superior Court on February 18, at 8:30 am.
The Felony Complaint in case 18CF3512 alleges that Jeffrey Scott Catanzarite is a California licensed chiropractor, who incorporated the Center for Better Health, A Medical Group, Inc., as a Medical Professional Corporation. He operated a medical clinic in Costa Mesa, and Riverside California, that provided treatment to workers’ compensation claimants.
Between 2008 and 2016, he operated the Center for Better Health under the name Southland Spine and Rehabilitation Medical Center, Inc..
To comply with the laws of Medical Professional Corporations, Catanzarite listed himself at all times as a 49-percent owner of Center for Better Health/Southland Spine, while also holding the positions of President and Secretary.
In 2012, Catanzarite promoted Max Humberto Matos, M.D., a treating physician for Center for Better Health/Southland Spine to be its Vice President, Medical Director and gave him a 51 percent ownership interest on paper. But prosecutors allege that despite Matos’s listed ownership interest, Catanzarite was the sole actual owner of Center for Better Health/Southland Spine, controlling its finances, and being responsible for making all substantive decisions.
Catanzarite employed Ronald Lee Martin and Veronica Martin through their company Priority One Health Resources, to run Center for Better Health/Southland Spine’s marketing department.
The Center for Better Health/ Southland Spine allegedly contracted to pay Grupo Medlegal LA and subsequently Medlegal Network, Inc. $1000 for each patient provided to Center for Better Health/Southland Spine for which it could bill workers’ compensation insurers. It typically paid Grupo Medlegal LA and Medlegal Network, Inc. $4,000 per week for 4 patient referrals.
The defendants also contracted to pay Providence Scheduling, for each patient provided to Center for Better Health/Southland Spine for which it could bill insurers. They typically paid Providence Scheduling Inc. $10,000 to $15,000 every 45 days for patient referrals.
Prosecutors claim that between January 3, 2011, and October 13, 2015, Catanzarite paid Grupo Medlegal LA $92,014.66 and Medlegal Network, Inc. $1,324,219.68 for unlawful patient referrals.
Prosecutors allege a number of crimes as a result of the defendants failure to disclose this information to a list of worker’s compensation insurance carriers and third party administrators who paid benefits on these claims.