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Judge Denies Motion to Dismiss State Fund RICO Complaint

By Greg Jones (Senior Editor)

Friday, November 22, 2013 | 2

A federal judge said the California State Compensation Insurance Fund can proceed with its Racketeer Influenced and Corrupt Organizations complaint against Michael D. Drobot, his son Michael R. Drobot and several companies they own.State Fund alleges the Drobots inflated prices for spinal hardware and prescription drugs through stocking distributorships they owned. The carrier also says the elder Drobot through entities, including Pacific Hospital of Long Beach, double-billed, upcoded and unbundled procedures on its invoices.Two days after holding a hearing on the motion, U.S. District Judge A...

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