LOS ANGELES- On March 19, 2015, detectives from the California Department of Insurance (CDI) arrested Los Angeles Doctor Glenn Neil Ledesma, 63, owner of California Dermatology Center, Inc. and his adopted son and CEO, Jonathan Ledesma, 49. Both are charged with multiple felony counts of health care disability fraud. The two men allegedly collected disability benefits totaling more than $1.8 million while continuing to work.
"The Ledesmas knew it was illegal to file for and collect disability benefits while still working," said Insurance Commissioner Dave Jones. "Their criminal activity is part of the health insurance fraud epidemic that totals billions of dollars annually and results in higher premiums for all consumers."
Dr. Ledesma first submitted a disability claim in 1997 stating he was unable to treat patients due to his medical condition. His insurer told him he could receive disability benefits while running his corporation, but was not allowed to treat patients or practice medicine. In 2008, Dr. Ledesma continued collecting disability payments while resuming his medical practice and treating patients. From 2008 to 2013, he treated more than 2,900 patients while simultaneously collecting $1,605,464 in disability benefits.
In 2008, Jonathan Ledesma, Dr. Ledesma's adopted son and CEO, filed a disability claim with UNUM Life Insurance Company of America indicating he was also unable to work due to medical reasons. He denied knowing Dr. Glenn Ledesma even though he listed the doctor as his employer and investigators discovered Jonathan Ledesma was in fact the CEO of one of eight of Dr. Ledesma's medical corporations, California Dermatology Center, Inc and his adopted son. From 2010 to 2013, Jonathan Ledesma collected more than $200,000 in disability benefits while performing administrative duties as CEO.
"Insurance Commissioner Dave Jones continues to make cracking down on insurance fraud one of his top priorities," said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. "He has high quality detectives who have what it takes to embark upon and stay with long, complex cases."
Both suspects were arrested in the early morning hours of March 19th and were released the next day.
Bail is set at $50,000 for each and each faces 20 years in state prison if convicted on all counts.