All nine defendants in the case have filed plea agreements, the U.S. Attorney’s Office said.
A Long Beach dock worker pleaded guilty on Wednesday, Jan. 10, to a federal charge of allowing phony claims to be submitted to his labor union’s health plan for the use of prostitutes under the guise of chiropractic services.
Rahm was among nine defendants, including seven dock workers at the Port of Long Beach, charged last year on allegations of allowing more than $2.1 million in fraudulent claims to be submitted to their union’s health insurance plan for sexual services or for physical therapy that never was provided. The scheme’s ringleader, Sara Victoria, 46, of San Pedro, pleaded guilty to conspiracy and aggravated identity theft and is also expected to be sentenced in April.
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