SANTA ANA, Calif. (KNX) — A former Coachella Valley woman pleaded guilty on Friday to federal charges connected with a scheme that fraudulently billed insurors of tens of millions of dollars for elective cosmetic procedures.
Linda Morrow, 69, has been in federal custody since 2019. On Friday, she pleaded guilty to one count of conspiracy to commit health care fraud. She admitted to authorities that she helped her husband, a medical doctor, operate the scheme out of The Morrow Institute in Rancho Mirage.
Morrow was the “executive director” of TMI. She admitted in court Friday that she defrauded insurance companies by submitting bills for procedures designated “medically necessary” — but in fact were for elective procedures like tummy tucks and rhinoplasty.
To defraud the insurance companies into believing that the patients had undergone medically necessary procedures, TMI patients were asked to sign “testimonial” letters or declarations that had false statements, according to court documents. In her plea agreement, Morrow admitted she coached patients to draft falsified testimonials.
Victim companies included Aetna, Anthem Blue Cross, Blue Shield of California, and Cigna Health Insurance. The scheme also defrauded a self-insured group of public entities, which TMI filed claims against to pursue payment for fraudulent surgeries. Entities included the Desert Sands Unified School District, the Palm Springs Unified School District, the city of Palm Springs, and even the California Highway Patrol.
The scheme inflicted about $44 million in losses on insurance agencies, prosecutors estimated.
Morrow additionally pleaded guilty to one count of contempt of court for fleeing the United States in 2017 after she was federally indicted for the fraudulent billing scheme. Morrow and her husband fled to Israel.
The couple were deported in 2019 after U.S. authorities tracked them down. They had reportedly entered Israel on fraudulent Mexican passports.
Morrow’s husband, 77-year-old Dr. David M. Morrow, is currently serving a 20-year prison sentence in connection with the scheme. He pleaded guilty in 2016 and was free on bond awaiting sentencing when the couple fled overseas.
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