SHERMAN OAKS—Roshanak “Roxanne” Khadem, 55, a former spa owner from Sherman Oaks, was sentenced to six years in prison for running a health care fraud scheme out of her business on Friday, October 14. According to reports, millions of dollars in false claims where submitted to insurance companies. U.S. District Judge Stephen V. Wilson also ordered her to pay more than $1.2 million in restitution and a $30,000 fine.

Khadem owned and operated R&R Med Spa, located in Valley Village until early 2016, and its successor company, Nu-Me Aesthetic and Anti-Aging Center, which was located in Woodland Hills. 

She owned and operated R&R Med Spa.

She convinced many of her clients to visit her clinic to receive what was referred to as “free” cosmetic procedures which included facials, laser hair removal and Botox injections. None of the procedures were covered by insurance. Khadem also knew that her employees informed some patients that, if they turned over their health insurance information to the Khadem-owned clinics, the patients could receive free or discounted cosmetic procedures pursuant to a “credit” they would earn.

Khadem and her colleagues obtained insurance information from her clients using it to bill for unnecessary medical services or for services that were never provided.

During the course of the scheme, Khadem and other conspirators submitted at least $20 million in claims to Anthem and other insurance companies, which paid about $8 million. 

The other companies targeted were the International Longshore and Warehouse Union, Pacific Maritime Association Benefit Plan, which is the health benefit plan that covers longshore workers in Southern California and their dependents, prosecutors said. Another victim was the Federal Employees Health Benefits Program, which provides health insurance for federal employees.

She plead guilty on February 8 to the charges in a Los Angeles federal court to one count each of health care fraud and tax evasion. Khadem failed to report this income she was receiving from the scheme on her income tax returns for 2013, 2014 and 2015. This underreporting of her income for these three years caused a total tax loss of $453,451.

Khadem and four others including a former fraud investigator at Anthem Blue Cross were charged in 2018 in a multiyear conspiracy to commit health care fraud against at least eight companies. 

Gary Jizmejian, 48, of Santa Clarita, was the former fraud investigator at Anthem. He pleaded guilty to using his cell phone to send text messages to co-defendants as part of the commercial bribery scheme. He is now serving an 18-month prison sentence. The remaining defendants all plead guilty.