Navy doctor heads to prison after taking part in $2M medical fraud scheme – NBC 7 San Diego

An ex-Navy doctor who took part in a scheme to file false medical claims to a military insurance program in exchange for unearned benefits was sentenced Friday to one year and a day in federal prison.

Prosecutors say Michael Villarroel and co-defendants bilked the Traumatic Servicemembers Groups Life Insurance Program out of around $2 million by submitting fraudulent claims for fake or exaggerated injuries or disabilities.

Villarroel received kickbacks in exchange for falsely stating that he determined servicemembers had legitimate injuries and provided medical records for use in the fabricated claims, according to the U.S. Attorney's Office.

Christopher Toups, a former chief petty officer who prosecutors say orchestrated the scheme, was sentenced earlier this year to 30 months in prison. Toups' ex-wife, Kelene Meyer, was a nurse who falsified medical records to bolster the claims of fake injuries. She was sentenced to one year and a day in prison.

For his role in the scheme, Vkllarroel was also ordered to pay $180,000 as criminal forfeiture.

“As fraudulent schemes go, this one was egregious,” said U.S. Attorney Tara McGrath. “Today the defendant found out there is a high price to be paid for pocketing money intended for injured and traumatized servicemembers.”

The U.S. Attorney's Office also said several defendants were stationed locally as part of the Explosive Ordnance Disposal Expeditionary Support Unit One in Coronado.