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CA Department of Insurance

Lodi doctor indicted in $700,000 insurance fraud scheme

News: 2018 Press Release

For Release: June 13, 2018
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Lodi doctor indicted in $700,000 insurance fraud scheme
Arraignment today for doctor who provided unnecessary treatments for his own financial gain

CASE UPDATE

Dr. Gary Royce Wisner did not enter a plea and the case has been continued until June 26, for further arraignment.

 

SAN JOAQUIN, Calif. — Dr. Gary Royce Wisner, 61, of Lodi, is scheduled for arraignment today at 1:30 p.m. in Department 8B at the San Joaquin County Superior Court on 11 felony counts of insurance fraud for bilking insurers out of more than $700,000 for allegedly providing unnecessary and excessive medical treatment for orthopedic patients.

"Dr. Wisner violated his Hippocratic Oath when he allegedly abused his patients and the workers' compensation system to line his pockets with illegal profits," said Insurance Commissioner Dave Jones. "When medical providers scam the system, everybody loses, including the injured workers, their employers and consumers when the losses are passed along to them through higher prices for goods and services."

The California Department of Insurance, the San Joaquin County District Attorney's Office, the California Department of Justice Bureau of Medi-Cal Fraud and Elder Abuse, and the U.S. Department of Health & Human Services launched a multi-agency investigation, which revealed Dr. Wisner was providing unnecessary treatments, including exposing his patients to excessive X-rays—all for the purpose of committing insurance fraud. Dr. Wisner's fraud resulted in a loss of over $700,000 to four insurers including State Compensation Insurance Fund, Zenith Insurance, Hartford and Tristar, the federal insurance system.

Health insurance fraud is a multi-billion dollar drain on California's economy and results in higher insurance premiums for business and consumers. Over the last two years, the Department of Insurance has made arrests in health care fraud cases totaling more than $2 billion dollars.

On May 30, 2018, a San Joaquin County criminal grand jury indicted Dr. Wisner on 11 felony counts of insurance fraud. The San Joaquin County District Attorney's Office is prosecuting this case.



The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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