Restaurateur’s Friend Accused of Medi-Cal Fraud

In what prosecutors are calling the largest Medi-Cal fraud case ever prosecuted in San Diego County, the girlfriend of San Diego restaurateur Paul Dobson faces two felony charges of illegally obtaining $77,224 in health care for her prematurely born infant.

Deputy Dist. Atty. Ralph Fear said Monday that Charolette E. Olson has been charged with single counts of Medi-Cal fraud and perjury. The charges against Olson, 25, were filed Thursday.

Fear said that Olson and Dobson were living together when she applied for Medi-Cal benefits for their baby girl, who is blind and was born with many health problems. Fear said authorities believe Dobson is the father of the child, yet Olson listed him only as a boyfriend when applying for Medi-Cal.

“The basis for the perjury charge is that, in the application the household composition is listed as her, the child and her boyfriend,” Fear said, “when our evidence shows that the household composition is her, the child and the father of the child.”

Dobson, 47, was not charged because investigators do not have any evidence that he participated in the effort to defraud Medi-Cal, Fear said.

Dobson’s role as father of the child has not been challenged, Fear added.

“It’s an element of the crime that would have to be proved. Based on the investigation so far, it has not been an issue. If it does become an issue, we’re prepared to ask a court to issue an order to all parties to undergo appropriate tissue testing,” he said.

“It’s the largest Medi-Cal suit that we have prosecuted out of this office,” Fear said.

State Medi-Cal officials began investigating Olson after a story appeared in the San Diego Union in December, Fear said. The case was presented to the district attorney’s office for prosecution in February, but the complaint against Olson was not filed until last week.

Dobson, who owns or is part-owner of three San Diego restaurants--Dobson’s, La Gran Tapa and St. James Bar--did not return phone calls Monday. Olson, who worked at one of Dobson’s restaurants, could not be reached for comment.

“As a result of listing a boyfriend, the only person’s income or assets looked at to determine the child’s eligibility for benefits is her salary and benefits. . . . Had she correctly stated the composition of the home, Medi-Cal would have determined what benefits the child was eligible for based on her and the father’s salary and benefits,” Fear said.

However, her attorney, Barry T. Utsinger, said that Olson did nothing illegal by applying for and receiving Medi-Cal benefits.

“It seems that she was eligible to receive the benefits she received. The district attorney is looking for vaguely defined terms between eligibility and non-eligibility. It’s a vague case in a nebulous area, and the district attorney’s office is making a mistake by prosecuting her,” Utsinger said.

He declined to comment when asked if Olson and Dobson are still living together, and if Dobson is the baby’s father.

Fear said the 18-month-old girl was born prematurely and with a number of medical problems. The child is blind and has been treated at the UCSD Medical Center, where she spent time in the hospital’s intensive care unit, he added.

“It cost $250,000 to pay for the child’s medical care. Medi-Cal paid $77,224. The rest came out of UCSD’s budget, which means the taxpayers, you and me, are paying for it,” Fear said.

If convicted of the charges against her, Olson could be sentenced to up to four years and eight months in state prison and ordered to pay back the money that Medi-Cal paid for the baby’s care, Fear said.