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Kidnapping Charges Added to LAPD Officer Facing Insurance Fraud

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Eric Benjamin “Ben” Halem, 37, of Porter Ranch, a former full-time Los Angeles Police Department officer and current LAPD reserve officer, and his brother, Jacob Halem, 32, of Tarzana, were arraigned in May 2025 on felony insurance fraud charges following an investigation by the California Department of Insurance. The investigation found the brothers allegedly filed a fraudulent auto insurance claim in an attempt to obtain benefits they were not entitled to receive.

The Department of Insurance began its investigation after receiving a fraud referral alleging Eric Halem falsely reported a crash involving his 2020 Bentley Continental GT, stating his brother Jacob Halem had borrowed the vehicle and was involved in a solo-collision on January 5, 2023. However, the investigation revealed that the luxury vehicle had actually been rented out through Eric Halem’s exotic car rental company, Drive LA, and crashed by the renter three days earlier.

Upon learning that the rental driver’s claim had been denied, Eric Halem allegedly filed a fraudulent claim with his insurance company on his personal policy, misrepresenting the accident details. He claimed that his brother, Jacob Halem, had been driving the vehicle at the time of the crash.

On August 11, 2025 the Los Angeles District Attorney announced that felony charges have been filed against Halem and three other men in connection with a violent home invasion and kidnapping for ransom in Koreatown last December.

Also charged in the case are Luis Banuelos (dob 5/25/97) of Jurupa Valley in Riverside County, Pierre Louis (dob 12/8/98) of Attleboro, Mass. and Mishael Mann (dob 7/31/05) of Los Angeles. Each defendant faces counts of kidnapping for ransom, first-degree residential robbery, and home invasion robbery in concert. Mann and Halem are being held on no bail, and Louis and Banuelos are each being held on $1.3 million bail.

On Dec. 28, 2024, at approximately 2:30 a.m., Halem and Mann allegedly entered an apartment in Koreatown, where they handcuffed two victims, transferred money from the victims’ cryptocurrency account, and stole cash and jewelry before fleeing. Banuelos and Louis are accused of serving as getaway drivers who waited outside the location.

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August 4, 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: Fraud in Federal Employment Law Case Supports Terminating Sanction. Consumer Watchdog’s DOI FAIR Plan Challenge Case May Proceed. AG Resolves Janitorial Misclassification Case for $2M. Fresno Man to Serve 7.5 Years for Opioid Prescription Fraud. Former Palmdale Insurance Agent Charged With $1.8M Fraud. CHSWC Releases California Janitor Workload Study Report. Alzheimer’s Association Now Favors Blood Tests for Diagnosis. Vizient Projects Cost Pressures Across Healthcare Supply Chain.

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Cal Supreme Court Improves Arbitration Rules for Employers

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Dana Hohenshelt sued his employer, Golden State Foods Corporation, in Los Angeles County Superior Court in November 2020. Hohenshelt alleged discriminatory retaliation, failure to prevent harassment, and Labor Code violations stemming from his reports of workplace sexual harassment and subsequent termination in April 2020.

Hohenshelt had signed a pre-dispute arbitration agreement governed by the Federal Arbitration Act (FAA), requiring binding arbitration for employment claims. Golden State was responsible for paying arbitration fees and costs.

The trial court compelled arbitration in August 2021 via JAMS. Arbitration proceeded for about a year. In July and August 2022, the arbitrator issued invoices totaling over $44,000 to Golden State, due upon receipt. Golden State paid late (after 30 days), citing inadvertence due to the arbitrator’s unavailability notice and counsel’s paternity leave.

Hohenshelt moved to withdraw from arbitration and lift the court stay under California Code of Civil Procedure § 1281.98 (part of the California Arbitration Act, or CAA), claiming Golden State’s late payment constituted a material breach. The trial court denied the motion, interpreting the statute to allow payment within 30 days of a later deadline set by the arbitrator.

The Court of Appeal (Second District, Division Eight) reversed, holding the payment was untimely and § 1281.98 was not preempted by the Federal Arbitration Act. It directed the trial court to lift the stay..

The California Supreme Court reversed the Court of Appeal decision in the published case of Hohenshelt v. Superior Court -S284498 (August 2025).

Under California law, employer must pay arbitration fees “within 30 days after the due date” (invoices are due upon receipt unless parties agree otherwise). Late payment constitutes a “material breach,” default, and waiver of the right to compel arbitration. The employee may withdraw or continue arbitration (if the provider agrees). The breaching party must pay the other’s reasonable expenses (mandatory); courts may impose additional sanctions unless justified.

The Legislature enacted section 1281.98 in 2019 (Senate Bill 707) to deter employers/companies from strategically delaying arbitrations by withholding fees, affirming federal cases like Brown v. Dillard’s, Inc. (9th Cir. 2005) and Sink v. Aden Enterprises, Inc. (9th Cir. 2003), which treated willful nonpayment as material breach.

The FAA requires arbitration agreements to be enforced like other contracts (no special rules disfavoring arbitration). Section 1281.98’s default 30-day rule (modifiable by parties) promotes arbitration’s goals of speed and efficiency without deviating from general contract law (e.g., time can be “of the essence” in urgent contexts; willful breaches discharge duties).

The Supreme Court rejected prior appellate interpretations treating section 1281.98 as a “bright-line” rule automatically forfeiting arbitration rights for any late payment (e.g., regardless of inadvertence). For example Gallo v. Wood Ranch USA, Inc. (2022) interpreting section 1281.98 rigidly.

Instead, it harmonized the statute with longstanding contract law principles (Civ. Code §§ 3275, 1511; Code Civ. Proc. § 473(b)), which allow relief from forfeiture for non-willful, non-fraudulent, or non-grossly negligent breaches if the breaching party compensates the other. The Legislature aimed to deter strategic nonpayment (per legislative history and cases like Brown and Sink), not penalize good-faith errors. This avoids preemption concerns by aligning with general contract defenses.

The Supreme Court reversed the Court of Appeal’s directive to lift the stay and remanded for the trial court to assess if Golden State’s delay was excusable (e.g., good faith mistake) and if Hohenshelt suffered compensable harm.

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OSHA Hosts Safe and Sound Week August 11-17

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OSHA hosts Safe + Sound Week every August.This nationwide event raises awareness about workplace safety and health programs. These invaluable programs are vital to help prevent injuries, illnesses and fatalities among workers who are exposed to hazards in the workplace or on jobsites. Safe + Sound Week gives employers and employees alike a chance to share ideas, make positive changes and celebrate achievements.

Employees who complete an event during Safe + Sound Week can download a certificate of recognition and a participant web badge that honors their commitment to safety.

Why Are Safety and Health Programs in the Workplace Important? Safety and health programs are designed to help ensure a safe workplace by proactively addressing hazards before they cause serious injuries, illnesses or fatalities. Rather than reacting to a problem that has already occurred, successful safety and health programs stop preventable accidents in their tracks by identifying and fixing hazards and providing safety training and equipment for workers.
How Can You Get Involved?

Safe + Sound is a nationwide event intended to raise awareness and encourage businesses to think proactively about safety. Getting involved is easy, and participation might look a little different for every organization. From hosting a public event, luncheon or training session to creating a presentation or video, the goals of Safe + Sound are simple:

    – – Raise awareness about the value of safety and health programs in the workplace
    – – Strengthen management leadership
    – – Improve worker participation
    – – Find and fix hazards to ensure workers go home safe every day

OSHA said that participating in Safe + Sound Week will help a company and its workers reap lasting benefits throughout the year:

    – – Implement a new safety and health program
    – – Review and improve existing safety and health programs
    – – Renew your commitment to safety to workers, customers, partners, and the community

Need help getting started? For fun ideas and customizable tools you can download, click to learn how to plan and promote your events.

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L.A. Fire Captain Charged with Falsifying Disability Claim

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A Los Angeles County Fire Department captain has been charged with fraudulently claiming long-term disability insurance for a work injury that could not have occurred because he was not at work.

45 year old Thomas Merryman was charged in case 25CJCF04929 with one felony count of insurance fraud, one felony count of false personation and two felony counts of forgery.

Merryman is accused of fraudulently claiming long-term disability benefits from Colonial Life & Accident Insurance Company by submitting forged paperwork from a physician and another Los Angeles County Fire Department captain. Merryman allegedly defrauded the insurance company of more than $25,000.

News sources report that Merryman retired on March 1.

The complaint was filed for a warrant on Aug. 8, and his arraignment is scheduled for Sept. 9 at the Clara Shortridge Foltz Criminal Justice Center in downtown Los Angeles. Authorities say Merryman currently resides in Georgetown, Texas. If convicted as charged, Merryman faces a maximum sentence of five years in state prison.

The case is being prosecuted by Deputy District Attorney Arunas Sodonis of the Healthcare Fraud Division and was investigated by the District Attorney’s Bureau of Investigation.

The charges filed in this case are allegations. The defendant is presumed innocent unless and until proven guilty in a court of law.

“Fake disability claims will not be tolerated under my watch, especially by first responders charged with keeping our county safe,” Los Angeles County District Attorney Nathan J. Hochman said. “False healthcare claims raise insurance premiums and make it more difficult for people with legitimate work injuries to claim benefits. My message to public servants who abuse the system is clear: We are watching you. Prosecutors and investigators in my office are working closely with the Los Angeles County Fire Department and other agencies to root out fraud.”

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PET-enabled Dual-Energy CT is Major Step Forward in Imaging

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The National Institutes of Health (NIH) has awarded the UC Davis Department of Radiology a National Institute of Biomedical Imaging and Bioengineering R01 Research Project Grant with a budget of $2.5 million for four years. The funding will advance a groundbreaking medical imaging technique that could significantly improve how doctors detect and understand cancer and bone and heart disease.

The innovation combines two powerful technologies — PET (Positron Emission Tomography) and dual-energy CT (Computed Tomography) — in a way that’s never been done before.

CT scans provide detailed images of the body’s internal structures. PET scans highlight areas where cells are very active. PET/CT scans are already widely used together to detect cancer and monitor how it spreads. However, traditional CT scans in PET/CT use a single energy level, which limits their ability to tell different types of tissues apart.

The new method, called PET-enabled Dual-Energy CT, changes that. It allows doctors to see not just where something is happening in the body, but also what it’s made of — without needing new machines or exposing patients to more radiation.

A paper published in the European Journal of Nuclear Medicine and Molecular Imaging late last year highlights the progress of the technological development. The research was previously supported by a Trailblazer R21 Award from the NIH and resources from UC Davis Comprehensive Cancer Center.

“This is a major step forward compared to other possible solutions,” said Guobao Wang, professor of radiology and principal investigator. “We’re using the PET scan’s own data to create a second, high-energy CT image. When combined with the regular CT scan, it enables dual-energy imaging that provides a much clearer picture and more detailed information about tissue composition.”

The new hybrid PET/CT dual-energy imaging technology was invented in Wang’s lab with broad applications for cancer imaging. The research employs EXPLORER, the first-of-its-kind total body PET scanner that was invented by UC Davis Health and United Imaging Healthcare, as a platform to validate the technique.

The potential benefits are wide-ranging:

    – – Cancer imaging – it could help distinguish between healthy and cancerous tissues more accurately.
    – – Bone marrow scans – it could improve how doctors measure disease activity more accurately.
    – – Heart disease – it could provide new insights into the role of bone and bone marrow in systemic inflammation and cardiovascular risk.

The method also opens new possibilities for combining PET metabolic information with CT-based tissue composition in a single scan, enhancing the ability to characterize tumors and detect treatment response. Notably, the technique can be implemented on many existing PET/CT scanners without requiring new hardware.

The research team is now working to test and refine the technique. If successful, this approach could be adopted in hospitals without the need for expensive equipment upgrades — making advanced hybrid imaging more accessible to patients everywhere.

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July 28, 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: Appeal of California Comp Carrier Rehabilitation Plan Denied. Uber Alleges L.A. Doctors & Lawyers Filed Fraudulent Claims. Aetna Whistleblower Wins $95M FCA Claim Against Major PBM. Insurance Executive Fraud Leads to Insurance Company Collapse. DOL to Rewrite or Repeal More Than 60 “Obsolete” Rules. Cal OSHA Audit Finds Multiple Processing & Staffing Deficiencies. New California Court Rule and Standard Adopted for Use of AI. DA Investigates Toxic Hazards at Carson Medical Products Facility.

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Kaiser Patient Portal Deployment Study Shows Good Outcomes

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Kaiser Permanente has been experimenting with AI in its patient portal, increasing patient engagement and experience in the process.

“Care is local, but at the same time it’s virtual and it’s become a global commodity,” Khang Nguyen, MD, assistant executive medical director for care transformation at Southern California Permanente Medical Group and chief medical officer of care navigation for the Permanente Federation, told Becker’s. “So patients are really expecting artificial intelligence to support healthcare in a way that is supporting other industries, in the sense that people are able to describe what they want versus being given choices.”

A new study, published in npj Digital Medicine in partnership with Seoul National University Bundang Hospital, focused on the deployment of the Kaiser Permanente Intelligent Integration (KPIN) system by the Southern California Permanente Medical Group (SCPMG), which serves 3.9 million patients. Implemented in October 2024, KPIN is an advanced patient portal system designed to enhance care navigation and patient experience.

KPIN replaced older systems (Microsoft’s LUIS and VSN Query Report) and integrated natural language processing (NLP) to generate clinical alerts for high-acuity cases and recommend appropriate care pathways. It supports multiple channels, including a web-based portal, mobile app, and self-service interactive voice response (IVR) system, ensuring consistent care navigation. The system verifies patient identity and guides them through booking processes, redirecting emergencies to 911 or hospitals.

October 1, 2024, to March 1, 2025, KPIN facilitated 2,960,945 digital visits, with 1,046,504 unique patients interacting with the system. Demographic data showed 36.6% of users were aged 30–49, 47.8% were female, and 38.9% were of Hispanic origin.

The study evaluated KPIN’s Clinical Alert System (CAS) and Virtual Safety Net (VSN) models for detecting high-acuity symptoms (e.g., chest pain, dyspnea) and guiding care navigation. Metrics included accuracy, precision, recall, F1-score, and area under the curve (AUC).

KPIN processed an average of 193,134 encounters daily, with a peak of 19,364. The adjusted successful booking rate was 53.8%, reflecting effective appointment scheduling. The abandonment rate was low at 0.94% (IQR: 2.7–3.1%), indicating high user engagement, attributed to a streamlined interface limiting interactions to nine per page.

Patient surveys showed an 8.6 percentage point increase in positive sentiment, suggesting improved user satisfaction. The system struggles with vague “Reason for Visit” entries, which can affect care pathway accuracy.

The authors of the study concluded that “KPIN’s integration into the patient portal significantly improved care navigation, clinical alert accuracy, and patient satisfaction within an integrated value-based care model, demonstrating the effectiveness of advanced digital tools in healthcare delivery.”

Dr. Nguyen called that the “biggest surprise” from the findings. “We all know with websites, if you want to bury anything on a website, just make it two clicks away, and then no one can ever find it,” he said. And when patients abandon the app because they can’t locate what they need, they typically contact the call center.

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Dismissal of Chamber of Commerce Medicare Challenge Affirmed

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The U.S. 6th Circuit Court of Appeals, on August 6, 2025, upheld a lower court’s dismissal of a lawsuit filed by the U.S. Chamber of Commerce, along with the Dayton Area Chamber of Commerce, Ohio Chamber of Commerce, and Michigan Chamber of Commerce, challenging the Medicare Drug Price Negotiation Program, a key component of the Inflation Reduction Act (IRA) signed into law in 2022. The program allows Medicare to negotiate prices for certain high-cost prescription drugs, aiming to reduce costs for beneficiaries and save the program an estimated $98.5 billion over a decade.

The lawsuit, initially filed in June 2023, argued that the program violated the First, Fifth, and Eighth Amendments of the U.S. Constitution, as well as separation of powers, claiming it gave excessive authority to the Department of Health and Human Services (HHS) and imposed unfair price controls. The U.S. Chamber sought a preliminary injunction to halt the program, but U.S. District Judge Michael Newman, a Trump appointee, denied this in September 2023, stating the plaintiffs failed to demonstrate a likelihood of success or irreparable harm. Newman also dismissed the case in August 2024, finding that the regional chambers (Dayton, Ohio, and Michigan) lacked standing to sue on behalf of their members, as their interests were not sufficiently aligned with the pharmaceutical companies’ concerns, such as AbbVie and its subsidiary Pharmacyclics, which were involved in the suit. The judge noted that the U.S. Chamber might have standing if it filed a new suit in a different venue.

The 6th Circuit, in a 12-page opinion written by Senior Judge Ronald Gilman (a Clinton appointee), affirmed the dismissal, agreeing that the regional chambers lacked associational standing. The court emphasized that the Dayton Chamber’s purpose of promoting regional business was not germane to the lawsuit’s focus on the constitutionality of a federal program affecting pharmaceutical manufacturers. The court also criticized the lawsuit as a potential “stalking horse” for forum shopping, as the plaintiffs lacked a direct connection to Ohio. However, the ruling clarified that regional chambers could challenge federal laws with broader impact in some cases, and a lack of corporate headquarters in a region is not necessarily fatal to standing, though it was insufficient here due to the disconnect with the Dayton Chamber’s purpose.

The decision marks the 10th court ruling in favor of the Medicare Drug Price Negotiation Program, which has faced multiple legal challenges from the pharmaceutical industry, including lawsuits from companies like AstraZeneca, Bristol Myers Squibb, Johnson & Johnson, and the trade group PhRMA. None of these challenges have succeeded in blocking the program, which has already negotiated price cuts ranging from 38% to 79% for 10 drugs, set to take effect in January 2026, with projected Medicare savings of $6 billion in the first year. Advocacy groups like Patients For Affordable Drugs hailed the ruling as a victory for over 9 million Medicare beneficiaries who will benefit from lower drug prices.

The U.S. Chamber could appeal to the U.S. Supreme Court, though no comment from them was reported immediately following the ruling. Meanwhile, other lawsuits against the program are ongoing in various federal courts, with potential appeals in the Second, Third, Fifth, and D.C. Circuits, which could lead to conflicting rulings and elevate the issue to the Supreme Court. The program’s voluntary nature – allowing drugmakers to opt out of Medicare entirely – has been a key factor in courts rejecting claims of unconstitutional price controls or takings, as participation is not mandatory.

This ruling reinforces the program’s legal standing, allowing Medicare to continue negotiating drug prices, a process that began with the first 10 drugs announced in August 2023, including treatments for diabetes, blood clots, and cancer from companies like Merck, Novo Nordisk, and AbbVie. The program remains a significant policy achievement for the Biden administration, despite ongoing industry opposition.

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Glendale Woman Sentenced to 9 Years for $10.6M Hospice Fraud

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A Glendale woman was sentenced to 108 months in federal prison for participating in a scheme in which hundreds of thousands of dollars in illegal kickbacks were paid and received for patient referrals that resulted in the submission of approximately $10.6 million in fraudulent claims to Medicare for purported hospice care.

Nita Almuete Paddit Palma, 75, of Glendale, was sentenced by United States District Judge Dolly M. Gee, who also ordered her to pay $8,270,032 in restitution.

At a separate hearing, Judge Gee sentenced Percy Dean Abrams, 75, of Lakewood, to three years of probation, which will include two years of home confinement.

At the conclusion of a six-day trial, a federal jury in December 2024 found Palma guilty of 12 counts of health care fraud and 16 counts of paying illegal kickbacks for health care referrals. The jury also found Abrams guilty of six counts of receiving illegal kickbacks for health care referrals.

Palma was excluded from Medicare, a federal health insurance program for people aged 65 and older, because of prior federal convictions for receiving illegal kickbacks. While she was excluded from Medicare, Palma purchased Magnolia Gardens Hospice through her daughter and bought C@A Hospice through her husband in 2015 and concealed her ownership interest in both hospices from Medicare.

Palma then paid “marketers”, including Abrams, hundreds of thousands of dollars in illegal kickbacks for patient referrals that Palma could bill to Medicare for purported hospice care.

Hospice is only for those who are terminally ill and have a life expectancy of six months or less. Hospice provides comfort care to a patient instead of trying to cure the patient’s illness, and a patient forfeits certain benefits under Medicare when electing hospice.

Consistent with instructions provided by Palma, Abrams falsely represented to prospective patients that they did not need to be dying to be on hospice. After collecting personal identifying information from prospective patients that were not dying, Abrams sent the information to Nita Palma so she could bill Medicare for purported hospice care.

Through Magnolia Gardens Hospice and C@A Hospice, Palma caused the submission of approximately $10.6 million in fraudulent claims to Medicare beginning in 2015 for purported hospice care for patients that were not dying. Palma received approximately $6,000 each month a patient was billed to Medicare for hospice. In turn, Palma paid Abrams and other marketers up to $1,000 per month in illegal kickbacks for each patient referred to her that was billed to Medicare for hospice. Many of the patients that were billed to Medicare through Magnolia Gardens Hospice did not know they were signed up for hospice, and some patients only found out after they were denied medical coverage for services they needed.

During the health care fraud scheme, Medicare requested additional documentation from Magnolia Gardens Hospice to support the purported hospice claims. In response, Palma and her husband directed employees to create fake patient charts and had those fake patient charts submitted to Medicare. Court documents allege that while awaiting trial in this matter, Palma took control of three other hospices and caused the submission of approximately $4.8 million in claims for purported hospice care.

The United States Department of Health and Human Services Office of Inspector General and the FBI investigated this matter.

Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section and Matt Coe-Odess of the Domestic Security and Immigration Crimes Section prosecuted this case.

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