San Pedro Woman Sentenced to Prison for Orchestrating Scheme that Defrauded Union’s Health Plan by Providing Sexual Services

LOS ANGELES – A San Pedro woman was sentenced today to more than two years in prison for her role in a $2.1 health care fraud scheme that submitted bills to a labor union’s health insurance plan for physical therapy, when in fact the patients received sexual services that she arranged. 

Sara Victoria, 46, was sentenced by United States District Judge Stanley Blumenfeld Jr. to 27 months in federal prison and ordered to pay $551,810 in restitution.

At the sentencing hearing, Judge Blumenfeld described Victoria as the “mastermind” of a “sophisticated” and “unique” fraudulent scheme. 

Victoria pleaded guilty in December to federal charges of conspiracy and aggravated identity theft. According to her plea agreement, from January 2017 to April 2021, Victoria owned and operated businesses in San Pedro and Wilmington that offered patients chiropractic services and acupuncture treatments, in addition to sexual services.

Victoria knew that dock workers and others involved in the shipping industry in Long Beach had health insurance under the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan. This plan generally covered all chiropractic services with no deductible and without requiring plan members to contribute any copay amount or out-of-pocket services.

Victoria hired women to provide sexual services to dock workers at her companies and recruited them through referrals and from strip clubs in the Long Beach area. In exchange for obtaining sexual services for themselves and their friends, ILWU-PMA plan members authorized Victoria to submit false claims for reimbursement for services such as chiropractic treatments and physical therapy – services not actually rendered – using their names or the names of their family members. Victoria also agreed to pay ILWU-PMA plan members cash kickbacks in exchange for authorization to submit false claims for reimbursement for services not actually rendered.

Victoria also admitted to using someone else’s identity without the person’s consent during the commission of the health care fraud scheme.

In total, Victoria submitted approximately $2,110,920 in claims to the ILWU-PMA plan, and the plan paid approximately $551,810.

The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.

Assistant United States Attorney Jason C. Pang of the Major Frauds Section prosecuted this case.