LOS ANGELES - On October 23, 2015, Peter Lira, 53, chief executive officer of Am-Pro Prosthetics & Orthotics in Whittier, was arrested on three felony counts of insurance fraud for allegedly billing Anthem Blue Cross for a $170,000 prosthetic arm knowing the patient had died and the prosthetic arm was no longer needed.
Suspecting fraud, Anthem referred the claim to the Department of Insurance for investigation. Detectives found evidence that Lira allegedly submitted fraudulent invoices and forged the deceased patient's signature on the delivery receipt to collect payment for manufacturing a prosthetic arm.
"This type of illegal activity is a contributing cause of the high cost of health insurance," said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. "Department of Insurance detectives work case after case to put a stop to those who operate in a fraudulent manner."
Lira is scheduled to appear in court on November 18, 2015. He faces five years in prison, if convicted on all counts.