LAX Leader

A former physician from Van Nuys, California, along with a company he founded and co-owned, has agreed to pay $15 million to settle allegations of submitting false claims to Medicare and Medi-Cal. The Justice Department announced the settlement involving Mohammad Rasekhi, Sheila Busheri, Southern California Medical Center (SCMC), and Universal Diagnostic Laboratories (UDL).

Rasekhi previously surrendered his medical license in December 2024. He is the founder and chief medical officer of SCMC and co-owner of UDL. Busheri serves as the CEO of both SCMC and UDL. SCMC operates six clinics in Southern California as a Federally Qualified Health Center, while UDL functions as a reference laboratory.

The United States alleged that the defendants submitted false claims by engaging in illegal kickbacks and self-referrals. These included paying marketers for referrals to SCMC clinics, providing above-market rent payments to third-party clinics for patient referrals to UDL, and referring patients from SCMC to UDL for tests against the Stark Act's prohibition on self-referrals.

The Anti-Kickback Statute prohibits offering or paying remuneration for patient referrals covered by federal health care programs. Similarly, the Stark Act prevents physicians from referring patients for services payable by Medicare or Medicaid if there is a financial relationship unless an exception applies.

U.S. Attorney Martin Estrada stated: “Providers who exploit the Medicare, Medicaid, and TRICARE programs for their personal financial gain will be held accountable under the False Claims Act.” Principal Deputy Assistant Attorney General Brian M. Boynton added: “This resolution upholds the Department’s abiding view that Medicare and Medicaid beneficiaries deserve care that is free from the taint of referrals that were driven by the providers’ financial interest.”

Eric Larson from HHS-OIG remarked: “There is an expectation that providers who receive Medicare and Medicaid program funds obey the law.” Bryan D. Denny from DCIS emphasized: “This case underscores DCIS’s commitment to working with its partners to hold accountable those who defraud TRICARE.”

The settlement resolves claims brought under qui tam provisions of the False Claims Act filed by former employees or managers Ferzad Abdi, Julia Butler, Jameese Smith, and Karla Solis against Rasekhi.

Assistant United States Attorney Jack D. Ross and Justice Department Trial Attorney Samson Asiyanbi handled this matter. The investigation was part of a coordinated effort involving several government entities focusing on combating healthcare fraud through tools like the False Claims Act.

No determination of liability has been made regarding these allegations.