Owner of Cosmetic Surgery Clinics Pleads Guilty to Healthcare Fraud

Arthur Kissel, also know as Arthur Froom, pleaded guilty to health insurance fraud, 11 years after he and his wife, Sonia LaFontaine, were indicted on charges to commit mail fraud, healthcare fraud and mail fraud, according to a report in the National Post.

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Mr. Kissel and Ms. LaFontaine ran Lafontaine-Riche Cosmetic Surgery and Skin Care Centre in Toronto, Canada, and other affiliated clinics in the United States, according to the report. Mr. Kissel, an American citizen, fought extradition back to the United States for 10 years before finally facing charges in a New York court.

Investigation into the clinics began in 1995, and further investigation began in 1998 after a woman died after undergoing liposuction at their New York clinic. According to the report, Mr. Kissel and Ms. LaFontaine began wiring money to a Canadian bank account in 1995 and purchased a $500,000 home in Florida under the name of their Canadian company.

Investigators also found that Ms. LaFontaine was operating without a medical license and was not acting under a physician’s supervision. According to the report, the clinic billed cosmetic procedures as medically necessary procedures, submitted claims for procedures that were not performed and exaggerated the number and complexity of procedures submitted.

Ms. LaFontaine was found guilty in 2000 and served 10 years in prison. She was released as Mr. Kissel pleaded guilty to charges, according to the report.

Read the National Post’s report about the U.S./Canadian cosmetic surgery clinic healthcare fraud scheme.

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