Between 2004 and 2007, after more than two years of investigation, 17 defendants were charged in the Unity Outpatient Surgery Center scam. This case, the People v. Tam Vu Pham et al., involves five surgery center administrators, nine cappers, also known as recruiters, and three doctors.   The defendants are accused of defrauding insurance companies by billing $96 million in fraudulent claims in an 8-month period and actually collecting more than $14 million. The defendants are accused of recruiting and operating on healthy patients with PPO insurance who were paid to undergo unnecessary surgical procedures. Many of the procedures had the potential of permanently injuring or even killing healthy people.

Five defendants, including two administrators and three cappers, have been convicted and received sentenced ranging from probation to 12 years in prison. Administrator Pham pleaded guilty and is awaiting sentencing. The remaining defendants are awaiting preliminary hearings or jury trials. This case is believed to be the first case in the United States that addresses the issue of outpatient surgery center fraud.