Former Chiropractor Receives Over Half Century Sentence for Massive Workers’ Compensation Fraud

In a significant ruling on April 12, 2024, a former chiropractor was sentenced to 54 years and eight months in state prison for masterminding a $150 million workers’ compensation fraud scheme. Identified as Peyman Heidary, the individual was also mandated to pay over $23 million in fines, highlighting the severity of his criminal actions against the workers’ compensation system.

From 2009 to 2014, Heidary controlled multiple fraudulent entities, including sham law firms and health clinics across Riverside County, California. His elaborate scheme involved exaggerating patient injuries and prescribing unnecessary treatments, which led to vastly inflated billings to insurance companies. This manipulation not only siphoned funds from insurers but also exploited legitimately injured patients who were misled and recruited into his network, receiving little to no effective treatment.

Riverside County District Attorney Mike Hestrin emphasized the detrimental impact of such schemes on both the financial stability of the workers’ compensation system and the well-being of innocent patients. He stressed that the substantial sentencing of Heidary serves as a stern warning against similar fraudulent activities within the county.

The case shed light on the complex mechanisms of insurance fraud, involving deceitful practices at multiple levels of patient care and legal facilitation. The Riverside County District Attorney’s Office, together with the California Department of Insurance, spearheaded the lengthy investigation leading to Heidary’s conviction on 68 counts, including insurance fraud, conspiracy, and money laundering.

This case underscores the ongoing challenges and the critical need for vigilance in the insurance industry, particularly in workers’ compensation sectors, to safeguard against fraud and ensure that the systems in place truly serve those in need.