LOS ANGELES (CNS) - A
David James Garrison, of
In exchange for his expected plea, prosecutors plan to recommend that Garrison be sentenced to at least eight years in custody to run concurrently with the six-year sentence he was handed previously.
The indictment alleges that the Lake Medical Group, near downtown
The pills were obtained from Southland pharmacies, some of which submitted fraudulent bills to the public insurance programs, according to federal prosecutors. Members of the conspiracy allegedly resold more than 900,000 OxyContin pills on the street, reaping an estimated $17 million in profits.
To deal with the large amounts of cash generated from the illegal OxyContin sales, some of the defendants “structured” cash deposits by making bank deposits in amounts of $10,000 or less to evade bank reporting requirements, prosecutors allege.
Other defendants used proceeds from drug sales to gamble at casinos to purchase automobiles and jewelry and to buy more OxyContin, according to court documents.
The scheme was allegedly orchestrated by Mike Mikaelian and Anjelika Sanamian, who operated the clinic on
The indictment alleges that Dr. Morris Halfon and other physicians based at
The indictment further alleges that a significant percentage of the prescriptions were filled at Southland pharmacies owned and operated by
A jury trial in the case is scheduled for late September.
Garrison, 51, was convicted in June 2012 of health care fraud and identity theft and sentenced last September to the six-years federal prison term. Evidence at trial showed that he worked at phony medical clinics that operated as prescriptions mills and trafficked in bogus prescriptions and orders for medically unneeded equipment such as power wheelchairs, and diagnostic tests.