Borrego Health has finally admitted to fraudulent activities and criminal conspiracies within the organization; and has filed a RICO, Racketeering lawsuit against 50 of the Foundation’s former board members, officers, contract dentists, Premier Healthcare Management, many other individuals and vendors, and Does 1-250 in the United States District Court, Southern District of California, on July 19, 2022.

In direct contrast to a public statement made by Sandra Hansberger, current chair of the Borrego Health Board of Trustees, on March 22, 2022, when replying to a question about the organization’s legal problems at a fundraiser for Supervisor Jim Desmond, where she stated emphatically, “When everything comes out, there will be no fraud.” Really? This latest lawsuit, in a series recently filed by Borrego Health, names “Insiders” that include officers and former board members that were complicit in draining the organization of public health funds for personal gain.

Dan Anderson, then chairman of the Board of Trustees, following the October 2020 FBI Raid, stated to the Borrego Sun and others, “It’s no big deal; just a couple of bad dentists.” However, the lawsuit claims the number of bad dentists that are known is 15, and still counting. According to the lawsuit, the dentists accomplished their theft of millions from Medi-Cal and Denti-Cal through phony contracts and kickbacks with the help of Borrego officers, and former trustees.

The 153-page document consistently attempts to substantiate how all the 53 causes of action and claims of harm to Borrego Health happened without the knowledge of the last two recent Boards of Trustees, the current Board under Chairman Hansberger, and previous chairman, Dan Anderson, who took over the chairmanship in 2018. Both signed off on fraudulent IRS 990s, both have denied any illegal activities, or knowledge of fraud, despite an inhouse legal report that recommended firing all officers as compliant. Plus, the two have served on the board for at least 10 years, long enough to know what was going on, or at least ask.

From the view of the Borrego Sun that reported on 95 % of the crimes named in the lawsuit, some cases presented have questionable or false information. Most shocking are Borrego Health officers named in the lawsuit, described as benefitting from a number of schemes, but not charged with crimes.

One of the most egregious statements in the lawsuit is that the multiple “Schemes,” as identified by the Borrego Health Plaintiffs, “Were concealed by the Defendants and most did not come to light until, at the earliest, October 2020, during a government investigation (FBI/DOJ raid). But for that UNRELATED investigation, the Schemes may have remain (sic) undiscovered.”

What’s wrong with this statement? The FBI investigation began with surprise raids of defendants named in this very lawsuit: Borrego Administration, Mikia Wallis’ home, Aldiairi’s dental offices, and Premier Healthcare Management’s offices. Who dreamed up the fiction that these raids were unrelated to the lawsuit? And, secondly, the “schemes'' were not “undiscovered” prior to the raid. In fact, it was reporting of the crimes that led to the raid and investigation. For the years between 2018 to 2020, leading up to the FBI/DOJ investigation, the Borrego Sun consistently reported on many of the illegal and unethical activities, which are now foundations of this lawsuit. In fact, the newspaper was the first to uncover and expose the entire contract dental/ Premier Healthcare fraud.

We knew, our readers knew, and the Sun regularly questioned Anderson and Hansberger repeatedly about the “alleged” crimes, which are now to be litigated. Their failure to reply, or lack of honest responses, are duly reported in back issues of the Sun.

Furthermore, the Borrego Sun publisher had meetings with the key offenders, Mikia Wallis, former CEO, following Bruce Hebets, the criminal mastermind; Dr. Alfredo Ratniewski, the executive chief medical officer; and Dan Anderson, chairman of the Board. In these meetings, which were held in 2019, prior to the FBI raid and investigation, he discussed the questionable criminal activities that were being uncovered and reported by the Sun.

Anderson knew what was going on from a number of other sources, prior to the FBI raid. Yet, he did nothing. So, four years later after the Sun began reporting on Borrego Health’s criminal problems, Sandra Hansberger’s Board is finally admitting some of the truth. But, of course, without being accountable, “Because the defendants concealed their criminal activities.” That’s not justice. Because, not all of the offenders will pay.

The full facts of this astonishing lawsuit will be reported in the upcoming issue of the Borrego Sun.