Southern California Labs to Repay $15 Million for Filing False Medical Claims
Dr. Mohammed Rasekhi and Sheila Busheri, owners of Southern California Medical Center, have agreed to pay $10 million to resolve allegations they defrauded government medical programs. Photo credit: Google Street View.
Dr. Mohammad Rasekhi and his wife, Sheila Busheri, submitted millions in false healthcare claims and engaged in a kickback scheme through their business, according to claims in a new DOJ press release.
Although they denied any allegations, the couple agreed to pay the settlement, out of which the State of California is set to receive $4 million, while $6 million will go to the federal government. An additional $5 million will be used to resolve a separate settlement between the relators and Rasekhi and his wife.
Husband-Wife Enterprise
Rasekhi was a founder and Chief Medical Officer of SCMC, while his wife is the Chief Executive Officer of this general practice clinic group located in California. This couple also owns Universal Diagnostic Laboratories, a medical facility for testing purposes.
From 2014 to 2021, Rasekhi was the main operator in offices located in Van Nuys, Pomona, Pico Rivera, Long Beach, Del Monte and Woodland Hills, Calif., while their testing facility and lab were located in Van Nuys, Calif., according to court documents.
Over three years, Rasekhi billed Medi-Cal for over $100 million, receiving $55 million in payments, according to Business Wire.
Statements by Officials
Attorney General Rob Bonta hailed the settlement of the case in a statement published on the California State DOJ website.
“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,” Bonta said. “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.”
Principal Deputy Assistant Attorney General Brian M. Boynton noted that cases like these affect the reliability of healthcare providers in a statement posted on the federal DOJ website.
“Kickback and self-referral schemes risk impairing the judgment of healthcare providers and diminish the reliability of the care that they render,” Boynton said.
Sexual Abuse Allegations
This is not the only legal problem Rasekhi faces.
In December 2024, he surrendered his medical license after the Medical Board of California accused him of the sexual abuse of three women under his care, according to the Los Angeles Times.
His attorney, Peter Osinoff, described the surrendering of his license as a smart move in a statement he gave to the LA Times. “For him to spend his retirement money litigating over a license he no longer uses is not a good use of money,” Ossinoff said.
Report Suspected Billing Fraud
Federal authorities encourage people to contact HHS at 800-HHS-TIPS (800-447-8477) to report any type of potential fraud, waste, abuse or mismanagement.
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