A Bakersfield attorney pleaded no contest Monday and was sentenced to two years in jail for his part in a $12.5 million scheme to overbill insurance companies for urine tests at sober living homes in Orange County.

Between January 2008 and December 2016, defendants Pamela and Philip Ganong owned sober living homes in Orange County, Bakersfield, Los Angeles, and San Diego, through their business William Mae Company, which operated as Compass Rose Recovery. In December 2011, the Ganongs formed a medical testing lab called Ghostline Labs.

Philip William Ganong, 70, accepted a plea agreement approved by Orange County Superior Court Judge Joy Markman. He pleaded no contest to 10 felony counts of fraudulent claims for a health benefit.

Multiple charges were filed in 2017 in connection with the scheme allegedly led by Ganong and his wife and co-defendant Pamela Mae Ganong, 67, who owned sober living homes in Orange County, Bakersfield, Los Angeles and San Diego, according to the Orange County District Attorney’s Office.

Pamela Mae Ganong is awaiting trial, but her case has been assigned to a court that handles defendants who are facing questions about whether they are mentally healthy enough to assist in their defense.

Pamela Ganong’s sister, 70 year old Susan Stinson of Carlsbad, was charged with conspiracy to commit medical insurance fraud. Stinson pleaded guilty to two felony counts of fraudulent claim for a health benefit on Wednesday and sentenced to time served behind bars, which was 34 days, according to court records.

Judge Markman ordered Stinson and Ganong to pay the $12.5 million restitution.

Charges against the Ganongs’ son, William Ganong, were dismissed in 2019 after he died, according to court records. Carlos X. Montano, M.D Newport Beach pleaded guilty in 2018 to insurance fraud and was sentenced to one year in county jail. His California medical license was revoked in June 2021.

  The Ganongs formed a medical testing lab in December 2011, and prosecutors said sober living home residents were recruited to join the scheme to overbill insurance companies for urine tests, which involved listing them as employees and signing them up fraudulently for health insurance.

California State Bar records show that Philip Ganong continues to be licensed as an attorney, but does show a cautionary note that he has been charged with a felony.