A couple from Southern California has agreed to pay a settlement of $10 million after being accused of orchestrating a large-scale scheme to defraud Medicare and Medi-Cal programs.
Dr. Mohammad Rasekhi and his wife, Sheila Busheri, allegedly submitted fraudulent healthcare claims and participated in a kickback scheme through their own businesses, as stated by the California Department of Justice.
Rasekhi founded and currently serves as the chief medical officer of Southern California Medical Center, a collection of general practice clinics. In addition, his wife holds the position of chief executive officer within the same group. Together, they are also co-owners of Universal Diagnostic Laboratories, a medical testing facility.
According to court documents, the medical group is described as a non-profit, Federally Qualified Health Center that offers healthcare services to underserved patient populations.
The reported schemes occurred from 2014 to 2021. Rasekhi had offices throughout the Southland, including Van Nuys, Pomona, Pico Rivera, Long Beach, El Monte, and Woodland Hills. The laboratory testing facility was based in Van Nuys.
The couple allegedly submitted fraudulent billing claims to federal healthcare programs.
According to prosecutors, they accused the clinics of paying illegal kickbacks to third-party marketers for referring Medicare and Medi-Cal beneficiaries. This action was said to be a violation of the Anti-Kickback Statute.
Officials acknowledged that they were aware of and actively engaged in paying kickbacks to external clinics in exchange for patient referrals to their lab testing facility. These kickbacks took the form of above-market rent payments, discounts on lab services for clinic staff, and the forgiveness of any outstanding balances owed by the clinics.
The couple allegedly received excessive reimbursement from Medi-Cal through this scheme.
In a settlement agreement, the couple has decided to pay a total of $10 million. Out of this amount, the State of California will receive $4 million, while the federal government will receive $6 million.
“When healthcare professionals exploit the Medi-Cal program, which is intended to help the state’s most vulnerable populations, they betray the very principles of the Hippocratic Oath and undermine a program designed to support the elderly, the ill, and those in need,” said Attorney General Rob Bonta. “The alleged actions of Dr. Rasekhi not only broke the trust of his patients but also diverted essential resources away from vital healthcare services that benefit the community. My office is dedicated to ensuring that integrity and compassion guide the care provided through the Medi-Cal program.”
In December 2024, Dr. Rasekhi made the decision to surrender his medical license following an accusation filed against him by the Medical Board of California. The accusation alleges that he engaged in sexual abuse of three women who were under his care. This information was reported by the Los Angeles Times.
According to the Times, the couple has denied all allegations. Rasekhi made the decision to retire from medicine instead of going through a hearing to defend himself against the accusations.