Lodi doctor indicted in $700,000 insurance fraud scheme
News: 2018 Press Release
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.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.