woman holding pen and white cotton candy

LOS ANGELES (CNS) – A former spa owner from Sherman Oaks faces sentencing today for running a fraud scheme in which more than $20 million in bogus claims were submitted to insurance companies.

Roshanak “Roxanne” Khadem, 55, previously pleaded guilty in Los Angeles federal court to one count each of health care fraud and tax evasion. She and four others — including a former fraud investigator at Anthem Blue Cross — were charged in 2018 in a multi-year conspiracy to commit health care fraud against at least eight companies.

She faces up to 13 years in federal prison.

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 operated in Woodland Hills.

She and others induced patients to visit the clinics to receive “free” cosmetic procedures, including facials, laser hair removal and Botox injections which were not covered by insurance.

The conspirators obtained insurance information from patients, using it to bill for unnecessary medical services or for services that were never provided.

Khadem and her associates calculated a “credit” that patients could use to receive the “free” or discounted cosmetic procedures.

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

The remaining four defendants each pleaded guilty.

The scheme defrauded, among other entities, 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.