BRIEFLY NEWS

-- Greg Risling

A Newport Beach man was one of six people arrested Friday who

allegedly operated a home-based medical billing scam that defrauded more

than 12,000 people out of almost $4.4 million.

Daniel Eugene Carr, 32, is suspected of participating in a telemarketing

scheme that had headquarters in La Habra and Placentia. Carr and six

others were indicted Wednesday by a federal grand jury on mail fraud and

wire fraud charges.

The 43-count indictment claims Carr and his partners worked at Data

Medical Capital, Data-Med and Medco. Federal prosecutors said the

defendants placed advertisements in newspapers around the United States

touting their company would establish a work-at-home medical billing

operation for prospective clients.

The defendants allegedly told their victims that for a $400 fee, they

would receive software, technical support and a database full of doctors

names who needed a medical billing company, the indictment reads.

Software was eventually sent to the company’s clients, prosecutors said,

but the list of doctors was a generic one. Most of the doctors had not

heard of the Orange County company.

Victims were also led to believe one payment would take care of

establishing their business. However, once they receive their

information, there were other expenses required.

Two other defendants also were named in the indictment, but have agreed

to surrender to federal officials at a later date.