A federal jury found a former doctor guilty on Dec. 16 of scheming to defraud private insurance companies of an estimated $68 million in connection with the GET-THIN lap-band surgery business.

Julian Omidi, 53, of West Hollywood, and the Omidi-controlled company Surgery Center Management LLC, located at 269 S. Beverly Drive, Ste. 1409 in Beverly Hills, were found guilty of 28 counts of wire fraud, three counts of mail fraud and one count of conspiracy to commit money laundering. Omidi also was found guilty of two counts of making false statements relating to health care, one count of aggravated identity theft and two counts of money laundering. The crimes occurred between May 2010 and March 2016.

Prosecutors said a co-defendant, Dr. Mirali Zarrabi, 59, of Beverly Hills, was acquitted of all charges.

According to evidence presented during trial, Omidi controlled the GET THIN network of entities, including Surgery Center Management. The companies promoted and performed lap-band weight-loss surgeries.

According to prosecutors, Omidi required prospective lap-band patients – even those with insurance plans he knew would not cover the surgeries – to undergo at least one sleep study. Employees were incentivized with commissions to make sure the studies were conducted.

Omidi used the sleep studies to create a reason – the co-morbidity of obstructive sleep apnea – to convince insurance companies to pre-approve lap-band surgeries. After patients underwent sleep studies – irrespective of whether a doctor had ever determined the study was medically necessary – GET THIN employees, acting at Omidi’s direction, often falsified the results. Omidi used the falsified sleep study results to support GET THIN’s pre-authorization requests for lap-band surgeries.

Relying on the false sleep studies, insurance companies authorized payment for some of the proposed lap-band surgeries. GET THIN received an estimated $41 million for the lap-band procedures.

Even when insurance companies did not authorize the surgeries, GET THIN submitted bills for approximately $15,000 for each sleep study and received an estimated $27 million in payments for the claims. The insurance payments were deposited into bank accounts associated with the GET THIN entities.

Victims of the scheme included Tricare, Anthem Blue Cross, UnitedHealthcare, Aetna, Health Net and the Operating Engineers Health and Welfare Trust Fund.

United States District Judge Dolly M. Gee scheduled a sentencing hearing for Omidi on April 6, 2022, at which time he will face 20 years in federal prison for each count of mail fraud, wire fraud and money laundering, as well as a mandatory consecutive two-year sentence for aggravated identity theft.

The government has seized more than $110 million in funds and securities from accounts held by individuals and entities involved in the GET-THIN criminal scheme, including Omidi. The government is seeking forfeiture of some or all the funds in the criminal case and intends to pursue civil forfeiture of the assets.