LOS ANGELES – (INT) - The University of California has uncovered a massive scheme targeting students through its student health plan that fraudulently obtained student information and then stole almost $12 million from UC by writing phony medical prescriptions in the students’ names.

The university plans to file a motion for a temporary restraining order in Los Angeles County Superior Court to immediately shut down the scheme, which involved enrolling UC students in sham “clinical trials” and by “recruiting” them at campus job fairs. UC believes both tactics were ploys to gain access to the students’ health insurance information and then write millions of dollars in phony prescriptions.

“Our first priority is to our students,” said Dr. John Stobo, executive vice president for UC Health. “This needs to be immediately stopped. We have identified nine different health care providers who prescribed medications to these students, likely without any indication of physical exams or even a physician-patient relationship.”

The bulk of the medications at issue – prescription-grade pain creams – are usually prescribed to elderly patients to treat arthritis. In court papers, the university alleged that the scheme specifically targeted UC students through Facebook ads, offering them as much as $550 in cash to participate in “clinical trials.” Medications were sent by mail without any pharmacist consultation, and even after the pharmacy was asked to stop.

In a statement Thursday, UC said the defendants appear to have convinced more than 500 students to part with sensitive personal information, which was then abused.

The vast majority of the prescriptions were filled at pharmacies in the Southern California cities of Studio City and Chino, even though students were enrolled at UCLA, UC Riverside, UC San Diego, and as far away as UC Santa Cruz and UC Davis.

Story Date: May 3, 2017