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Studies Show Surgeons Continue to Leave Materials in Patients

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A Hearst Newspapers investigation, published on April 16, 2025, revealed that surgeons across the United States have inadvertently left surgical materials – such as sponges, wires, needles, drill bits, instruments, and broken tool fragments – inside patients’ bodies over the past decade. The full article is available on Hearst Newspapers’ platforms, such as the San Francisco Chronicle or Houston Chronicle

These incidents, known as retained surgical items (RSIs) or “never events,” are rare but can have severe consequences, including infections, organ damage, additional surgeries, and, in extreme cases, death. The investigation, conducted by reporters Emilie Munson and Leila Merrill, highlights the persistence of these medical errors despite protocols designed to prevent them, such as mandatory counting of surgical items and the use of radiopaque sponges visible on X-rays.

While exact numbers vary due to underreporting, studies cited in related sources estimate RSIs occur in approximately 1 in every 5,500 surgical procedures, with around 1,500 cases annually in the U.S. The Hearst investigation emphasizes that these incidents often require additional surgeries, extend hospital stays, and cause significant patient harm, such as infections, abscesses, or organ damage. For example, retained sponges, which account for 48% to 69% of RSIs, can lead to “gossypiboma,” where the body forms a mass around the foreign object, causing pain or complications like fistulas or bowel obstructions.

The investigation notes a range of items left behind, including:

– – Surgical sponges and gauze (most common, often used in large quantities during procedures).
– – Needles, wires, and drill bits.
– – Surgical instruments like clamps or retractors.
– – Broken fragments of tools, such as catheter tips or parts of wire cutters.These items are typically left in the abdomen, pelvis, or chest, but cases have been reported in vaginas, spinal canals, and even brains

The investigation points to human error as a primary cause, often due to:

– – Inaccurate manual counting of surgical items, which can be disrupted by complex procedures, shift changes, or distractions.
– – Poor communication among surgical teams.
– – Complacency or overconfidence in counts reported as correct, even when items are missing.
– – Inadequate documentation or failure to follow protocols like the World Health Organization’s surgical safety checklist.

The investigation references specific cases to illustrate the human toll:

– – A 2021 case where a woman suffered for 18 months after a plastic wound retractor (the size of a dinner plate) was left inside her abdomen following a C-section. An abdominal CT scan eventually
– – A 2018 case in Japan where a woman experienced abdominal bloating for six years due to two gauze sponges left during a C-section, which had adhered to her connective tissue and colon
– – A California man who suffered infections and septic shock from two retained surgical clamps, leading to a stroke.

The investigation underscores systemic challenges, including:

– – Underreporting of RSIs due to inconsistent definitions, varying reporting requirements, and fear of litigation.
– – Limitations of manual counting processes, which are prone to error in high-stress, complex surgeries, especially those involving obese patients or trauma cases requiring numerous instruments
– – Resistance to adopting new technologies, such as RFID-tagged sponges or barcode systems, due to cost or integration challenges, despite their potential to reduce errors.
– – RSIs lead to significant costs for hospitals, with a single case potentially costing up to $600,000 due to corrective surgeries and legal fees. Malpractice claims are common, with a 2003 study noting an average of $52,000 in compensation and legal expenses per case.

Hospitals employ several strategies to prevent RSIs, including:

– – Surgical teams count sponges, instruments, and other items before and after procedures. However, studies show that counts are often recorded as correct even when items are left behind.
– – Sponges and some instruments are embedded with X-ray-detectable materials to aid identification if left inside a patient.
– – The WHO surgical safety checklist and National Safety Standards for Invasive Procedures aim to standardize safety checks, but compliance varies.
– – Systems like ORLocate’s Surgical Counting and Detection System use RFID or barcode technology to track items more accurately, but adoption is not widespread.

Despite these measures, the investigation notes that errors persist due to the complexity of surgical environments, staff fatigue, and organizational pressures, such as high workloads or frequent staff changes during procedures.

The Hearst investigation aligns with prior studies and reports highlighting RSIs as a persistent patient safety issue. For instance, a 2008 study at the Mayo Clinic found RSIs in 1 in 5,500 surgeries, with most counts incorrectly reported as accurate. A 2017 article from the National Center for Biotechnology Information (NCBI) notes that RSIs can be life-threatening, often requiring further operations. The investigation also reflects Hearst Newspapers’ history of award-winning investigative journalism, as seen in their Polk Awards for reporting by the San Antonio Express-News and San Francisco Chronicle.

Discover Magazine on RSIs discusses real-world cases, such as the 2021 C-section retractor case and the 2018 Japanese gauze case, with broader implications. Washington Post on Never Events Reports 4,857 objects left in patients over two decades, with insights into malpractice claims and systemic issues. Times Union on New York Cases details specific RSI incidents, including a surgical sponge missed during a hysterectomy due to incorrect counting. PSNet on RSI Epidemiology offers data from California’s reporting system (2007–2011), noting 58% of RSI cases involved sponges or towels. Minnesota Department of Health reports 270 retained objects since 2003, emphasizing sponges and clamps as common items.

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Misdated VA PACT Act Disability Decisions Cost Millions

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The PACT Act (Promise to Address Comprehensive Toxics Act of 2022) is a landmark law that expands VA health care and benefits for veterans exposed to toxic substances, such as burn pits, Agent Orange, and radiation. Signed into law on August 10, 2022, it is considered one of the largest expansions of veteran benefits in U.S. history.

However a sampling of disability claims filed under the 2022 PACT Act found that roughly one-quarter listed incorrect start dates, resulting in improper payouts of about $6.8 million to some veterans and shortchanging an estimated 2,300 others, the Department of Veterans Affairs’ internal watchdog found.

In a report released this month, the Veterans Affairs Officer of Inspector General concluded that the legislation’s complexity, along with inadequate guidance from the Veterans Benefits Administration, led claims adjudicators to assign the wrong “effective date” to an estimated 26,000 claims, resulting in overpayment by the government in the first year of the legislation.

An estimated 2,300 additional claims had erroneous dates — including some that should have been made retroactive to a date before the law was signed, increasing compensation for veterans — but the watchdog agency said it “could not determine their monetary impact” on any affected veterans.

According to the VA, it has received 2.44 million PACT Act-related claims since the law went into effect. It has adjudicated 2.14 million claims and approved 1.59 million and, as of May 2024, had awarded $5.7 billion in related benefits to veterans or survivors. The VA OIG estimated that the VA will have made an estimated $20.4 million in improper payments in the first three years of the law, representing about 0.36% of payouts.

Some veterans who had diagnosed conditions covered by the PACT Act prior to its passage were eligible for retroactive benefits back to their date of diagnosis. After Aug. 10, 2023, any approvals under the act would have the date of application as a start date for benefits or, in the case of intentions filed before that date, to Aug. 10, 2022.

The complexity of determining the correct start date led the VA OIG to review claims for accuracy.

To figure out whether the VA was assigning effective dates correctly, the watchdog examined a statistical sampling of 100 claims filed in the law’s first year. Based on that analysis, the OIG estimated that the VBA assigned an incorrect effective date to roughly 26,100 of 131,000 claims, and it found it likely that an additional 2,300 should have been assigned a date that may have awarded veterans and their families more money.

“Errors that had the potential to affect veterans’ compensation benefits payments occurred when claims processors decided claims before taking all the necessary steps, such as gathering additional evidence, to determine whether a more advantageous effective date applied,” wrote Larry Reinkemeyer, the VA’s assistant inspector general for audits and evaluations, in the report. “As a result, some veterans did not receive their correct benefit payments.”

The OIG found that mistakes were made because claims processors were not adequately prepared to determine correct effective dates. The team added that the automated tools created to provide assistance in determining a date “were unreliable.” The team also noted that claims processors had made the VBA aware of the complexities, and the administration had taken steps to include updated training and conduct reviews to ensure accuracy.

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WCAB Denied Commutation of 76% PD Award to Pay Bills

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Chester Taylor worked as a kosher food manager/inmate laborer for State of California, Department of Corrections Inmate Claims when he sustained an industrial injury to his bilateral arms on January 20, 2017.

The injury was resolved through a Stipulated Findings & Award on April 6, 2024, which provided him with a 76% permanent disability rating. The defendant, State Compensation Insurance Fund (SCIF), paid permanent disability benefits at a weekly rate of $160.00, totaling $49,406.39 through December 13, 2024.

Mr. Taylor filed a petition to commute his remaining permanent disability benefits into a lump sum, covering the period from December 13, 2024, for the remainder of his life expectancy.

At trial, he testified that his monthly income (from Social Security, workers’ compensation, and SNAP benefits) totaled $2,428.00, while his expenses (rent, food, medical copays, and dental expenses) amounted to $1,251.00. He claimed to be in arrears by $300.00 to $600.00 per month, borrowing approximately $600.00 per week from his daughter. However, he provided no documentary evidence to substantiate these figures.

The presiding Workers’ Compensation Administrative Law Judge (PWCJ) denied Mr. Taylor’s petition, finding that he failed to meet the burden of proof under Labor Code § 5100(a). The lack of documentary evidence supporting his financial claims and the unclear calculations of his expenses were critical factors.

The WCAB denied reconsideration in the panel decision of Chester Taylor vs. State of California, Department of Corrections Inmate Claims – ADJ13319691 (April 2025).

Under Labor Code § 5100(a), commutation of benefits is allowed if it is “necessary for the protection of the person entitled thereto, or for the best interest of the applicant.” Additionally, § 5100(b) requires that commutation must avoid inequity and not cause undue expense or hardship to the applicant.

The Workers’ Compensation Appeals Board (WCAB) has discretion to grant or deny commutation, and the applicant bears the burden of proving the necessity of commutation. (Hulse v. Workers’ Comp. Appeals Bd. (1976) 63 Cal.App.3d 221, 226 [41 Cal.Comp.Cases 691].)

The PWCJ also noted that commuting the benefits could potentially cause undue hardship, as Mr. Taylor’s current income, including permanent disability payments, was insufficient to cover his expenses. Commuting the benefits would reduce or eliminate this income stream, potentially exacerbating his financial difficulties.

The WCAB, in its Opinion and Order dated April 8, 2025, adopted and incorporated the PWCJ’s report and denied the Petition for Reconsideration, affirming the PWCJ’sdenial of commutation.

The WCAB noted that Mr. Taylor remains free to file a new petition for commutation if he can provide adequate evidence meeting the requirements of Labor Code § 5100(a) and (b).

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Insurance Agent and Son Charged With $1.4M Commission Fraud

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The California Department of Insurance announced that five individuals, including former insurance agents, have been charged in a large-scale insurance fraud scheme involving misrepresented life insurance policies that resulted in fraudulent commissions totaling over $1.4 million.

Daniel Jon Carpenter, 62, of Morgan Hill, was arraigned on felony charges of insurance fraud, grand theft, and identity theft. Carpenter, a former insurance agent, allegedly orchestrated the fraudulent scheme alongside four co-defendants.

– – Natorae Marie Wettstein, 56, of Rancho Mirage, was arraigned on felony charges of insurance fraud and grand theft.
– – Blake John Carpenter, 27, of San Jose, the son of Daniel Jon Carpenter, was arraigned on felony charges of insurance fraud and grand theft.
– – Noah Maxwell Kuh, 26, of San Jose, was arraigned on a felony charge of insurance fraud.
– – Alejandro Carlos, 25, of Gilroy, remains a fugitive at large and is wanted on felony charges of insurance fraud and grand theft.

The Department of Insurance launched its investigation after receiving a complaint from a consumer alleging forgery and insurance fraud linked to life insurance policies sold by Daniel Carpenter.

The investigation revealed that Carpenter, in conjunction with Wettstein, Blake Carpenter, Carlos, and Kuh, misrepresented life insurance policy terms to California consumers while falsifying agent information on policy applications submitted to multiple insurance companies. This deceptive scheme allowed them to collect unearned commissions from four insurance carriers between 2017 and 2023.

In total, the defendants fraudulently obtained over $1.4 million in commissions by manipulating over $2 million in insurance premiums from 28 California consumers. The California Department of Insurance has successfully assisted in recovering over $2 million for the affected victims.

Carpenter, Wettstein, Blake Carpenter, and Kuh are scheduled to return to court on April 25, 2025. Anyone with information on Carlos’ whereabouts is asked to contact the Department at 707-751-2000. The Santa Clara County District Attorney’s Office is prosecuting the case.

According to Santa Clara County Superior Court records one client, Alex Lowry, sued Carpenter and Wettstein in 2021, alleging Carpenter forged his signature to purchase two $7.5 million life insurance policies, with Wettstein listed as the agent due to Carpenter’s lack of authorization.

Wettstein claimed Lowry was repaid $190,000 in premiums and knowingly held the policies, while Carpenter denied the allegations but offered to settle. Lowry dropped the case in August 2024 for unclear reasons.

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Exclusive Remedy Applies if Contracting for 52+ Hour Job

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Hugo Osoy hired Pablo Arredondo Padron in 2019 to install two skylights in Osoy’s home, a project expected to take 10–12 days (80–96 hours). Padron, who lacked a contractor’s license, agreed to the job for $4,000.

On July 31, 2019, while working, Padron fell from a ladder held by Osoy, suffering serious injuries after less than 52 hours of work. Padron lost consciousness and could not recall the cause of the fall. He was unable to continue the project and was paid $1,000 for his work.

On May 21, 2020, Padron sued Osoy in Los Angeles Superior Court for negligence, premises liability, and labor code violations, alleging Osoy provided a defective ladder and failed to ensure safety.

Osoy moved for summary judgment, arguing workers’ compensation was Padron’s exclusive remedy, as he had a homeowners’ insurance policy with workers’ compensation coverage from the Interinsurance Exchange of the Automobile Club (AAA)

It was undisputed that Padron and Osoy contracted for Padron to perform residential work exceeding 52 hours (specifically, 80–96 hours for the skylight installation). The trial court concluded that the exclusion in Labor Code section 3352 (a)(8)(A) which applies to employment “was, or was contracted to be, for less than 52 hours” – did not apply because the contracted duration surpassed the 52-hour threshold, – regardless of Padron’s injury occurring after fewer hours.The trial court granted summary judgment for Osoy, and Padron appealed.

The California Court of Appeal affirmed a summary judgment in favor of defendant Hugo Osoy in the published case of Padron v. Osoy – B333512 (April 2025) – holding that plaintiff Pablo Padron’s exclusive remedy for injuries sustained while working on Osoy’s home was through workers’ compensation, not a civil lawsuit.

The central dispute involved interpreting Labor Code section 3352 (a)(8)(A), which excludes workers from workers’ compensation coverage if their employment “was, or was contracted to be, for less than 52 hours” in the 90 days before the injury. Padron argued that because he worked less than 52 hours before his injury, he was excluded from workers’ compensation and could sue in court.

The Court of Appeal disagreed. “When employment is contracted to be for more than 52 hours, the exclusion in section 3352(a)(8)(A) does not turn on the fortuity of how many hours into that employment a worker is when they are injured. Rather, section 3352(a)(8)(A) excludes from workers’ compensation (1) employment contracted to be for less than 52 hours, and (2) employment for less than 52 hours where no time period was contracted for.”

“Because Padron contracted to do more than 52 hours of work, section 3352(a)(8)(A) does not exclude him from workers’ compensation coverage regardless of his injury occurring in less than 52 hours of work.”

Padron also contends the trial court erred in granting summary judgment because there is a triable issue whether Osoy should be estopped from relying on the exclusivity defense. As the factual predicate for this estoppel claim, Padron relies on evidence that Osoy and his insurer, a homeowners’ insurance policy from the Interinsurance Exchange of the Automobile Club (AAA), which included workers’ compensation coverage, delayed informing Padron that he was entitled to workers’ compensation benefits and providing him with a claim form.

“Despite raising a claim of estoppel, Padron did not adduce any evidence to show that Osoy or AAA made any factual misrepresentations regarding Padron’s eligibility for workers’ compensation coverage. Even if Osoy and AAA remained silent as to whether Padron was eligible for workers’ compensation benefits, such inaction does not show a triable issue of affirmative conduct intended to convey facts to Padron regarding potential workers’ compensation coverage.”

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Accounting Chief at Girardi Keese Law Firm to Serve 10 Years

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The former longtime head of the accounting department at the now-shuttered downtown Los Angeles plaintiffs’ personal injury law firm Girardi Keese was sentenced to 121 months in federal prison for enabling the embezzlement of millions of dollars from the firm’s injured clients and for embezzling money from the law firm itself.

Christopher Kazuo Kamon, 51, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest, was sentenced by United States District Judge Josephine L. Staton. Judge Staton also ordered Kamon to pay $8,903,324 in restitution.

At today’s hearing, Judge Staton remarked on Kamon’s assistance with the ongoing fraud against Girardi Keese clients, noting he helped build a “web of deceit and manipulation.”

Kamon pleaded guilty in October 2024 to two counts of wire fraud.

From 2004 until December 2020, Kamon was the head of the accounting department at Girardi Keese, a plaintiffs’ personal injury law firm based in downtown Los Angeles. In this position, Kamon worked closely with co-defendant Thomas Vincent Girardi, 85, formerly a resident of Pasadena but who now resides in Seal Beach, as well as other senior lawyers at the law firm.

In December 2020, Girardi Keese’s creditors forced the once-prominent law firm into bankruptcy proceedings. The law firm dissolved in January 2021 and the State Bar of California disbarred Girardi in July 2022. On August 27, a federal jury in Los Angeles found Girardi guilty of four counts of wire fraud. Girardi’s sentencing hearing is expected to occur in the coming months.

In addition to supervising the law firm’s accounting department, Kamon oversaw facilitating payment of the law firm’s expenses. Kamon had a duty to keep accurate books and records of Girardi Keese, including accounting of money held in its attorney-client trust accounts. Typically, Girardi determined and directed which clients would be paid, how much they would be paid, when they would be paid, and signed all outgoing checks to clients. Kamon had signatory authority on additional Girardi Keese operating accounts.

From at least 2010 until December 2020, Girardi and Kamon schemed to defraud Girardi Keese clients out of their settlement money, using the misappropriated funds to pay the law firm’s payroll, the law firm’s credit card bills, and to pay Girardi and Kamon’s personal expenses.

Specifically, one Girardi Keese victim-client suffered severe burns all over his body when a natural gas pipeline exploded in San Bruno, California in September 2010. Girardi negotiated a $53 million settlement of the case without the client’s prior approval and told the client the case settled for just over $7 million. Per the terms of the settlement, $25 million was invested into an annuity. The remaining $28 million was wired into a Girardi Keese client trust account in January 2013. Girardi, aided and abetted by Kamon, misappropriated, and embezzled that client’s settlement money and used the funds to pay other Girardi Keese expenses and liabilities unrelated to this client, including payments to other law firm clients whose own settlement funds previously had been misappropriated by Girardi and others.

To prevent the victim from discovering Girardi’s embezzlement, Girardi lied to the client by saying the funds had been transferred into a separate interest-bearing account. In fact, no such transfers had been made and no such interest-bearing account containing these funds existed.

Girardi and Kamon sent lulling payments to the victim as “interest payments” deriving from the purported interest-bearing account. In July 2019, they sent the victim a $2.5 million check, purportedly as disbursement of the victim’s settlement funds. In fact, Girardi and Kamon knew these settlement proceeds belonged to other Girardi Keese clients. Girardi already had spent the victim’s settlement funds through disbursements unrelated to the victim’s case.

In a separate criminal case, Kamon admitted to running a years-long scheme in which he embezzled Girardi Keese funds for his personal enrichment. From at least 2013 to December 2020, Kamon utilized co-schemers to pose as “vendors” who were providing goods and services to the law firm. Kamon caused the supposed vendors to issue fraudulent invoices to Girardi Keese for goods and services that they purportedly provided to the law firm.

Kamon caused Girardi Keese to pay the amounts due on the fraudulent invoices. In fact, the law firm was paying the “vendors” for Kamon’s personal benefit, including for construction projects at his homes in Palos Verdes and Encino.

According to evidence presented at the recent trial of Tom Girardi, part of Kamon’s scheme involved payments to a female companion amounting to hundreds of thousands of dollars, including a monthly stipend of $20,000, out of the Girardi Keese operating accounts despite the woman having no employment relationship with Girardi Keese.

Kamon – along with Girardi and David R. Lira, Girardi’s son-in-law and a former Girardi Keese lawyer – also faces federal fraud charges in Chicago. Trial in that case is scheduled for July 14.

IRS Criminal Investigation and the FBI investigated this matter.

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Labor Alliance Officers Sentenced For WC and Pension Fraud

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Fresno residents Marcus Asay, 69, and Antonio Gastelum, 53, were sentenced to five years in prison and two years in prison, respectively, for committing a long-running pension fraud scheme through their company, Agricultural Contracting Services Association dba American Labor Alliance. ALA also received a corporate fine of $2.5 million. Asay and ALA were each ordered to pay $69,250 in restitution.

On June 18, 2024, Asay, Gastelum, and ALA were convicted of the pension fraud scheme following a five-week jury trial. Asay and ALA were also convicted of committing a worker’s compensation fraud scheme, a hardship exemption fraud scheme, and money laundering. The hardship exemption fraud scheme involved a supposed exemption from the Affordable Care Act’s requirement that people obtain health insurance or pay a significant shared responsibility payment when they file their taxes.

According to court documents and evidence presented at trial, Asay was the founder and chairman of ALA, and Gastelum was the company’s Chief Operating Officer, Chief Financial Officer, and Compliance Officer. From 2011 through 2019, the defendants offered three sham products: retirement plan, worker’s compensation coverage, and hardship exemption.

For the worker’s compensation fraud scheme, Asay and ALA falsely represented that national insurers backed the worker’s compensation coverage that the company offered in several states, including California. Asay and ALA did so by listing the national insurers on the certificates of insurance and policy declarations that the company issued to customers. The accuracy of the certificates of insurance and policy declarations was important to the customers because they needed to present these items to their own customers and regulators as proof of having worker’s compensation coverage in order to continue doing business. When government authorities began investigating the workers’ compensation fraud scheme, Asay and ALA sent letters to customers telling them not to cooperate. The worker’s compensation fraud scheme generated $2.25 million in premiums.

For the pension fraud scheme, Asay, Gastelum, and ALA falsely represented to more than 3,000 people that they would protect and invest their retirement money through a 401(k) Plan when, in fact, they used the money for improper business and personal expenses. The improper expenses included restaurants, travel, credit cards, rare coins, transfers to Asay’s personal retirement account, online companion websites, and rent for Asay’s lakefront mansion in Fresno. Asay, Gastelum, and ALA then covered up the fact that the retirement money was gone by taking money the company received from the worker’s compensation fraud scheme and holding those funds out as pension funds. The loss caused by the pension fraud scheme was more than $620,000.

Asay’s money laundering conviction resulted from this scheme because he moved pension funds through multiple bank accounts to conceal the source of the funds before using them for improper expenses.

For the hardship exemption fraud scheme, Asay and ALA falsely represented that for a few hundred dollars they could provide people with an exemption that would protect them from the Affordable Care Act’s shared responsibility payment for not having health insurance when, in fact, only government agencies could issue such exemptions. Moreover, the exemptions were free to those who qualified.

Asay and Gastelum received enhanced sentences because they both testified in their own defense at trial and were found to have perjured themselves.

This case was the product of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Labor-Management Standards, Federal Bureau of Investigation, the IRS Criminal Investigation, and the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman prosecuted the case.

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Community Colleges Face Massive “Pell Runner” Financial Aid Fraud

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California’s community colleges are reporting a rise in financial aid fraud. In January, suspected bots represented 1 in 4 college applicants. Schools have given away millions to these scams, and college officials say fraudsters are getting smarter with the help of AI.

They’re called “Pell runners.” “Pell Running” in this context refers to a type of financial aid fraud where individuals enroll in colleges, apply for federal Pell Grants (intended for low-income students to cover education costs), collect the funds – up to $7,395 per year as of recent award years – and then drop out without completing courses. These individuals, called “Pell Runners,” exploit the system for personal profit, as Pell Grants don’t require repayment under normal circumstances

Estimates suggest Pell Grant fraud costs taxpayers over $1 billion annually, with some experts citing 3.6% of disbursements as fraudulent. In 2003, the U.S. General Accounting Office (GAO) estimated that Pell grant fraud accounted for about $300 million in grants per year – about 3 percent of total money handed out. A decade later, the program has more than tripled in scope (roughly doubling between 2008 and 2010), and fraud seems to be as bad as ever.

One expert, Mark Kantrowitz of FinAid.org, believes that Pell grant fraud still runs at about 3.6 percent or more than $1 billion a year. The Obama administration reported that “improper payments” – money distributed erroneously due either to fraud or mistakes – to Pell recipients totaled 2.7 percent of disbursements in 2011. Kantrowitz’s higher number is based on the number of students who receive grants but never obtain degrees. Considering that the Education Department doesn’t have the manpower to track down all fraudsters, Kantrowitz’s estimate may be closer to reality.

Since fall 2021, California’s community colleges have given more than $5 million to Pell runners, according to monthly reports they sent to the California Community Colleges Chancellor’s Office. Colleges also report they’ve given nearly $1.5 million in state and local aid to these scammers. The chancellor’s office began requiring the state’s 116 community colleges to submit these reports three years ago, after fraud cases surged.

The California Student Aid Commission told the Los Angeles Times it had identified more than 65,000 applications for aid from purported community college students that appear to be fake, lending credence to the idea that scammers are seeking to get their hands on state grants.

A 2024 IntelliBoard article estimates 460,000 fraudulent applications in California alone, clogging enrollment and wasting funds. Nationally, fraud spiked post-COVID due to online learning and stimulus funds – $40 billion in emergency aid was a magnet for scammers. A 2011 Chronicle of Higher Education piece (older but relevant) notes the Education Department investigating 74 fraud rings back then, suggesting this isn’t new, just evolved. Community colleges remain prime targets due to low tuition, leaving more grant money for fraudsters to pocket.

There are two primary ways in federal student aid is abused. One is the Pell runner described above. Students obtain grants, receiving directly whatever money is left over after tuition and fees are paid. Then they drop out of school without finishing any courses.

Federal law makes this scam possible. Grantees are allowed to attend school for 12 semesters (six years) in total before they lose eligibility for more money. There are no academic requirements to obtain a Pell grant; the only requirements are based on income and the cost of attending school. And there is no graduation requirement.

The other form of student aid abuse is more complex. It tends to be aimed at online education and is designed to make off with Pell grants and federal student loans as well. Criminals form rings, in which the leader recruits multiple “straw students” who apply for the grants and loans, then shares the haul with them.

Such fraud has lately become easier to commit due to the rise of online education, since students don’t even have to appear in person. In 2011, the Education Department reported a “dramatic” increase in financial aid scams involving online education, opening 100 investigations in the first 8 months of 2011, compared to just 16 investigations in 2005.  The report found that “straw students drop or withdraw from programs after they receive their credit balance payments and then kick back a portion of the funds to the ringleader and, if applicable, a recruiter.”

According to the FBI website, Pell Grant fraud is widespread. Technological advances and changes to the administration of higher education present new opportunities for criminals and greater challenges for law enforcement. Federal law is reactive, but colleges and universities must be proactive by extending orientation periods, mandating in-person orientations, assigning more coursework during the first weeks of class, reporting nonattending students, and delaying or compartmentalizing financial aid disbursements to help eliminate this white-collar crime.

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April 7, 2025 – News Podcast

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Rene Thomas Folse, JD, Ph.D. is the host for this edition which reports on the following news stories: Cigna Faces Class Action for Use of PxDx Algorithm to Deny Claims. Legal Aid Lawsuit Forces EDD to Fix Broken UI Notification System. UIM Arbitration is Not a “Civil Action” Protected by Covid Rules. Old Arbitration Agreements Need Clear Wording After Viking River. After Supreme Ct. Remand, CSU Need Not Reimburse Employees. LA Couple Sentenced for $2.3M WC Premium Fraud. San Diego Plumbing Contractor Sentenced for SCIF Premium Fraud. EDD Employee to Serve 66 Months for Fraud and Bribery Scheme.

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2024 Developments in Orthopedic Surgical and Non-Surgical Care

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According to a new report by the The Kettering Joint Center, 2024 has ushered in a new era for orthopedic research, with the field experiencing a surge of innovation and advancement in the way physicians approach musculoskeletal health.

One of the most significant shifts in orthopedic medicine has been the move towards personalized medicine. Advances in genetic testing and the understanding of individual patient’s unique biology have paved the way for treatments that are tailored to the specific needs of each patient. This personalized approach has the potential to significantly improve the efficacy of treatments and reduce the risk of complications.

Technology has played a pivotal role in shaping these new therapies. From the use of 3D printing to create custom implants to the development of advanced imaging techniques that provide detailed insights into joint health, technology has enabled orthopedic surgeons to perform procedures with unprecedented precision and accuracy. Moreover, the integration of wearable sensors and mobile health applications has allowed for continuous monitoring of patients’ recovery, enabling real-time adjustments to treatment plans.

The field of orthopedics has also seen a rise in the use of regenerative medicine, with stem cell therapy and platelet-rich plasma treatments gaining traction as viable alternatives to traditional surgical interventions. These therapies harness the body’s natural healing mechanisms to repair damaged tissues, offering hope to patients suffering from a range of orthopedic conditions.

Robotic-assisted surgery represents a significant leap forward in orthopedic surgical precision. Surgeons are now able to leverage robotic systems that provide unparalleled accuracy and control during operations. These systems, often guided by pre-operative imaging and real-time intraoperative data, allow for the precise placement of implants and the meticulous execution of bone cuts. The benefits are clear: reduced risk of complications, improved surgical outcomes, and a more predictable recovery process for patients. The integration of robotics has particularly revolutionized joint replacement surgeries, where the alignment and positioning of implants are critical to long-term success.

The advent of 3D printing technology has ushered in an era of personalized orthopedic care. Custom implants, tailored to the exact anatomical specifications of an individual patient, can now be manufactured with remarkable speed and precision. This technology has been particularly beneficial for patients with complex bone deformities or unique anatomical structures, where off-the-shelf implants may not provide the best fit.

Orthopedic care in 2024 has seen a significant shift towards non-surgical therapies that offer alternatives to traditional invasive procedures. These emerging treatments have the potential to revolutionize the way we address musculoskeletal conditions, providing patients with less invasive options that can yield impressive results.

Regenerative medicine has taken center stage in orthopedic non-surgical treatments. Two of the most promising therapies within this field are stem cell therapy and platelet-rich plasma (PRP) injections.

Targeted drug delivery systems have become increasingly sophisticated, allowing for the precise administration of medications directly to the site of injury or disease. This approach minimizes systemic side effects and maximizes the therapeutic impact.

The identification of specific biomarkers has revolutionized the diagnosis of orthopedic conditions. Through advanced laboratory techniques, healthcare professionals can now detect and measure biological indicators of inflammation, tissue damage, and disease progression. This has led to more objective and quantifiable diagnoses, paving the way for targeted therapies.

One of the most anticipated developments is the potential for bioabsorbable implants, which offer the advantage of eliminating the need for a second surgery to remove permanent implants. These implants are designed to break down over time, allowing the body to heal naturally without foreign objects remaining.

Despite the technological advancements, the orthopedic community faces the critical challenge of conducting robust clinical trials to validate new treatments. The high cost and complexity of these trials can be a barrier to progress, and there is a pressing need for more efficient and collaborative approaches to research.

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