4615 documents - first choice medical - dir.ca.gov · vs. ) 10 ) 11 faramarz fred khalili 01/10/61...

4615 DOCUMENTS - FIRST CHOICE MEDICAL

EXH. DESCRIPTION

1. Felony Complaint in the criminal case of The People of the State of California v. Faramarz Fred Khaliliet al, Case No. 15CF2507, before the Superior Court of California, County of Orange.

2. Federal Docket Report in the criminal case of United States of America v. Khalili, Case No.96CR00156 EJG 1, before the United States District Court for the Eastern District of California.

3. Board of Chiropractic Examiners records re: Faramarz Fred

4. Board of Chiropractic Examiners Decision in the case of In the Matter of the Acquisition Against:Faramarz Khalili, Case No. 99 110.

5. Board of Chiropractic Examiners Decision in the case of In the Matter of the Petition for Reinstatementof Revoked License of: Faramarz Fred Khalili, Case No. 1999 110.

1 SUPERIOR COURT OF CALIFORNIA CO'DN'l'Y OF ORANGE, CEN'l'RAL JUSTICE CENTER 2

3

4

5

6 THE PEOPLE OF THE STATE OF CALIFORNIA, )

7 ) Plaintiff, )

8 ) 9 )

vs. ) 10 )

11 FARAMARZ FRED KHALILI 01/10/61 ) N9365659 )

12 AKA FARAMARZ KHALILI )

13 FAMARZ FRED KHALILI ) HALILI ARAMAR Z )

14 SANDRA GARCIA MARTINEZ 05/24/68 )

15 C6548229 ) AKA SANDRA MARTINEZ )

16 SANDRA GARCIA )

17 HITENDRA HIRACHAND SHAH MD 01/01/47 ) Cl825179 )

18 )

19

FILED SUPERIOR COURT OF CALIFORNIA

COUNTY OF ORANGE CENTRAL JUSTICE CENTER

MAR 01 2016 ALAN CARLSON, Clerk of lf!e Court

B ,fL Y: ,DEPUTY

FELONY COMPLAINT WAR AMENDMENT 1

OCDA WC14110013

20 The Orange County District Attorney charges that in Orange

21 County, California, the law was violated as follows:

22 /

23 I I

24 /

25 I I

26 /

21 I I

28 I I I

FELONY COMPLAINT WARRANT (DA CASE# 1SF01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ, HffENDRA SHAH

Exhibit 1

FARAMARZ FRED ICHALILI OCDA WC14110013 PAGE 2

l COUNT 1: On or about and between September 13, 2012 and December 28, 2012, in violation of Section SSO(a) (5) of the

2 Penal Code (CONSPIRACY TO COMMIT INSURANCE FRAUD), a FELONY,

3 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and BIRACHAND SHAH MD did unlawfully conspire with BITENDR

4 BIRACBAND SHAH, SANDRA GARCIA MARTINEZ, FARAMARZ FRED KHALILI, s with the intent to defraud, to prepare, make, and subscribe a

material writing with the intent to present and use it to 6 WORKERS COMPENSATION CARRIERS in support of a false an 7 fraudulent claim. It is further alleged that pursuant to and for

the purpose of carrying out the objects and purposes of the 8 conl\Jpiracy, one and more of the conspirators committed the g following overt acts:

10 OVERT ACT 1

11 Fred Khalili entered into an agreement with Healthcare Finance

12 Management on 9/1/2012 to distribute transdermal compound creams

13 which were manufactured by Curt's Compounding Pharmacy in Orange County to the Workers Compensation patients seen at First Choice

14 Beal thcare Medical Group.

15 OVERT ACT 2

16

17 Under the guise of selling accounts receivables to Healthcare Finance Management, Fred Khalili received kickbacks to

18 prescribed transdermal compound cream manufactured by Curt's

19 Compounding Pharmacy in Orange County, California.

20

21

OVERT ACT 3

Healthcare Finance Management would not purchase accounts 22 receivables from Khalili unless they were for prescriptions

23 relating to transdermal compound creams manufactured by Curt's Compounding Pharmacy in Orange County, California.

24

25 OVERT ACT 4

26 Fred Khalili and Sandra Martinez ordered the physician• s assistants who worked at First Choice to prescribe at least two

27 compound transdermal creams to as many workers compensation

28 patients as possible regardless of medical necessity.

FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1

FARA.MARZ FRED ICHALILI OCDA WC14110013 PAGE 3

l OVERT ACT 5

2 Dr. Hitendra Shah and Dr. Craig Chanin prescribed these compound

3 transdermal creams to workers compensation patients per Fre Khalili1s instruction regardless of medical necessity.

4

5 OVERT ACT 6

6 curt• s Compounding Pharmacy manufactured a 3 '."day supply and gave 7 it to First Choice, so that the medical staff could hand the

workers compensation patients the transdermal creams at the 8 clinic and justify First Choice• s ability to bill insurance

9 carriers for distribution of these creams.

10 OVERT ACT 7

11 Healthcare Finance Management would only pay First Choice for

12 distribution of the transdermal Compound Creams manufactured by

13 Curt•s Compounding Pharmacy if the physicians at First Choice also prescribed a larger size of the transdermal creams to

14 patient which would then be directly shipped from Curt• s

15 Compounding Pharmacy in Orange County to each patient.

16

17

OVERT ACT 8

Between 9/1/12 and 12/28/12, Healthcare Finance Management paid 18 First Choice in excess of $774, 000 for prescribing compoun

19 transdermal creams.

20

21

OVERT ACT 9

The last payment issued by Healthcare Finance Management to 22 First Choice was on 12/28/12 in the amount of $49, 725.

23 COUNT 2: On or about and between September 07, 2012 an

24 December 18, 2012, in violation of Section 550(a) (5) of the

25 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ FRED ICHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACEAND S

26 MD, with the intent to defraud, did knowingly and unlawfully

27 prepare, make, and subscribe a material writing, with the intent to present and use it, and to allow it to be presented to

28 AMERICAN CLAIMS MANAGEMENT, in support of a false and fraudulent claim, and did aid and abet, and solicit another to do the same.

FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ, H/TENDRA SHAH

Exhibit 1

FARAMARZ FRED KHALILI OCDA WC14110013 PAGE 4

1 COUNT 3: On or about· and between September OS, 2012 and December 20, 2012, in violation of Section SSO(a) (S) of the

2 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM) , a FELONY, FARAMARZ

3 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACEAND S MD, with the intent to defraud, did knowingly and unlawfull

4 prepare, make, and subscribe·a material writing, with the intent s to present and use it, and to allow it to be presented to ALAS

INTERNATIONAL, in support of a false and fraudulent 6 did aid and abet, and solicit another to do the same. 7

COUNT 4: On or about and between September 21, 2012 an 8 December 10, 2012, in violation of Section SSO(a) (5) of the 9 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM) , a FELONY, FARAMARZ

FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACEAND SHAH lO MD, with the intent to defraud, did knowingly and unlawfully

11 prepare, make, and subscribe a material writing, with the intent to present and use it, and to allow it to be presented to ANTH

12 BLUE CROSS, in support of a false and fraudulent claim, and did

13 aid and abet, and solicit another to do the same.


15 December 13, 2012, in violation of Section SSO(a) (5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

16 FRED :KHALILI,· SANDRA GARCIA MARTINEZ and HITENDRA HIRACEAND SHAH

17 MD, with the intent to defraud, did knowingly and unlawfully prepare, make, and subscribe a material writing, with the intent

18 to present and use it, and to allow it to be presented to

19 APPLIED RISK MANAGEMENT, in support of a false and fraudulent claim, and did aid and abet, and solicit another to do the same.

20

21 COUNT 6: On or about and between September 06, 2012 and December 19, 2012, in violation of Section SSO(a) (5) of the

22 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

23 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACEAND SHAH MD, · with the intent to defraud, did knowingly and unlawfully

24 prepare, make, and subscribe a material writing, with the intent

25 to present and use it, and to allow it to be presented to AIG/ CHARTIS, in support of a false and fraudulent claim, and did ai

26 and abet, and solicit another to do the same.

27 I

28 I I I


Exhibit 1


1 COUNT 7: On or about and between S eptember 04, 2012 and December 20, 2012, in violation of Section 550(a) (5) of the


3 FRED KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACHAND S MD, with the intent to defraud, did knowingly and unlawfull

4 prepare, make, and subscribe a material writing, with the intent 5 to present and use it, and to allow it to be presented to CHUBB

INS., in support of a false and fraudulent claim, and did 6 and abet, and solicit another to do the same. 7

COUNT 8: On or about and between S eptember 04, 2012 an 8 December 20, 2012, in violation of Section 550(a) (5) of the 9 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

FRED KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACHAND S lO MD, with the intent to defraud, did knowingly and unlawfully

11 prepare, make, and subscribe a material writing, with the intent to present and use it, and to allow it to be presented to CNA

12 INS._, in support of a false and fraudulent claim, and did ai


14 COUNT 9 : On or about and between S eptember 04, 2012 an

15 December 20, 2012, in violation of Section 550(a) (5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

16 FRED KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACHAND SB.AB



19 COMPWEST INS., in support of a false and fraudulent claim, an did aid and abet, and solicit another to do the same.

20

21 COUNT 10: On or about and between September 04, 2012 and December 20, 2012, in violation of Section 550(a)(5) of the


23 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SB.AB MD, with the intent to defraud, did knowingly and unlawfully


25 to present and use it, and to allow it to be presented to CRUM &

FORESTER, in support of a false and fraudulent claim, and 26 aid and abet, and solicit another to do the same.

27 I

28 I I I

FELONYCOMPLAINTWARRANT(DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1


1 COUNT 11: On or about · and between September 04, 2012 and December 20, 2012, in violation of Section 550(a) (5) of the


3 FRED KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACBAND S MD, with the intent to defraud, did knowingly and unlawfully

4 prepare, make, and subscribe a material writing, with the intent 5 to present and use it, and to allow it to be presented to

DISNEY, in support of a false and fraudulent claim, and did ai 6 and abet, and solicit another to do the same. 7

COUNT 12: On or about and between September 04, 2 012 an 8 December 20, 2012, in violation of Section 550(a) (5) of the 9 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

FRED KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACBAND SSAB lO MD� with the intent to defraud, did knowingly and unlawfully 11 prepare, make, and subscribe. a material writing, with the intent

to present and use it, and to allow it to be presented to 12 EMPLOYERS, in support of a false and fraudulent claim, and did



15 December 20, 2012, in violation of Section 550 (a) (5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

l6 FRED ICBALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACHAND .S



19 FARMERS, in support of a false and fraudulent claim, and did ai and abet, and solicit another to do the same.

20

21 COUNT 14: On or about and between September 04, 2012 and December 20, 2012, in violation of Section 550(a) (5) of the


23 FREJj KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACHAND SSAB MD, with the intent to defraud, did knowingly and unlawfully

24 prepar�, make, and subscribe a material writing, with.the intent

25 to present and use it, and to allow it to be presented to FIREMAN'S FOND, in support of a false and fraudulent claim, an

26 did aid and abet, and solicit another to do the same.

27 I

28 I I I

FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1

FARAMAR.Z FRED KHALILI OCDA WC14110013 PAGE 7

1 COUNT 15: On or about and between September 04, 2012 an December 20, 2012, in violation of Section 550{a) (5) of the

2 Penal Code {INSURANCE FRAUD - WRITTEN CLAIM) , a FELONY, FARAMARZ

3 FRED KHALILI, SANDRA GARCIA MARTINEZ and EITENDRA EIRACEAND S MD, with the intent to defraud, did knowingly and unlawfully


HARTFORD, in support of a false and fraudulent claim, and 6 aid and abet, and solicit another to do the same. 7

COUNT 16: On or about and between September 04, 2012 an 8 December 20, 2012, in violation of Section 550{a) (5) of the 9 Penal Code {INSURANCE FRAUD - WRITTEN CLAIM) , a FELONY, FARAMARZ

FRED KHALILI, SANDRA GARCIA MARTINEZ and EITENDRA EIRACEAND S lO MD, with the intent to defraud, did knowingly and unlawfully

11 prepare, make, and subscribe a material writing, with the intent to present and use it, and to allow it to be presented to ICW,

12 in support of a false and fraudulent claim, and did aid and

13 abet, and solicit another to do the same.


15 December 20, 2012, in violation of Section 550{a) (5) of the Penal Code {INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

16 FRED KHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACEAND S


18 to present and use it, and to allow it to be presented to 19 LIBERTY MUTUAL, in support of a false and fraudulent claim, an

did aid and abet, and solicit another to do the same. 20

21 COUNT 18: On or about and between September 04, 2012 and December 20, 2012, in violation of Section 550{a) (5) of the

22 Penal Code {INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

23 FRED KHALILI, SANDRA GARCIA MARTINEZ and EITENDRA EIRACEAND S MD, with the intent to defraud, did knowingly and unlawfully


25 to present and use it, and to allow it to be presented to PACIFIC COMP, in support of a false and fraudulent


27 I

28 I I I

FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALIU, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1


1 COUNT 19: On or about and between S eptember 04, 2012 an December 20, 2012, in violation of Section 5SO(a)(S) of the

2 Penal Code (INSORANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

3 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACBAND S MD, with the intent to defraud, did knowingly and unlawfull


S�RIGHT, in support of a false and fraudulent claim, and did 6 aid and abet, and solicit another to do the same. 7

COUNT 20: On or about and between S eptember 04, 2012 an 8 December 20, 2012, in violation of Section 550(a) (5) of the 9 Penal Code (INSORANCE FRAUD - WRITTEN CLAIM) , a FELONY, FARAMARZ

FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACBAND SHAH lO MD, with the intent to defraud, did knowingly and unlawfully


12 SEDWICK INS., in support of a false and fraudulent claim, an



15 December 20, 2012, in violation of Section 5SO(a) (5) of the Penal Code (INSORANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

16 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACBAND SHAH


18 to present and use it, and to allow it to be presented to SENTRY

19 INS, in support of a false and fraudulent claim, and did aid an abet, and solicit another to do the same.

20

21 COUNT 22: On or about and between September 04, 2012 and December 20, 2012, in violation of Section 550(a) (5) of the

22 Penal Code (INSORANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

23 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND s MD, with the intent to defraud, did knowingly and unlawfull


25 to present and use it, and to allow it to be presented to TRAVELERS, in support of a false and fraudulent claim, and di


21 I

28 I

I

I


Exhibit 1


1 COUNT 23: On or about and between September 04, 2012 an December 20, 2012, in violation of Section 550(a)(5) of the


3 FRED ICHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACBAND SHAH MD, with the intent to defraud, did knowingly and unlawfully

4 prepare, make, and subscribe a material writing, with the intent 5 to present and use it, and to allow it to be presented to YORK

RISK MGT, in support of a false and fraudulent claim, and di 6 aid and abet, and solicit another to do the same. 7

COUNT 24: On or about and· between September 04, 2012 8 December 20, 2012, in violation of Section 550 (a) (5) of the 9 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM) , a FELONY, FARAMARZ

FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA BIRACBAND SHAH 10 MD, with the intent to defraud, did knowingly and unlawfully


12 ZENITH, in support of a false and fraudulent claim, and did aid



15 December 20, 2012, in violation of Section 550(a) (5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ

l6 FRED ICHALILI, SANDRA GARCIA MARTINEZ and BITENDRA BIRACBAND S



19 ZURICH, in support of a false and fraudulent claim, and did aid and abet, and solicit another to do the· same.

20

21 COUNT 26: On or about November 15, 2012, in violation of Section 549 of the Penal Code (FALSE AND FRAUDULENT CLAIM), a FELONY,

22 FARAMARZ FRED KHALILI, S ANDRA GARCIA MARTINEZ and BITENDRA

23 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the

24 knowledge that, and with reckless disregard for whether

25 HEALTHCARE FINANCE MANAGEMENT intended to violate Penal Code section 550 and Insurance Code section 1871.4.

26

21 I I

2a I I I

FELONY COMPLAINTWARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1



2 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITEND

3 HIRACBAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the

4 knowledge that, and with reckless disregard for whether 5 HEALTHCARE FINANCE MANAGEMENT intended to violate Penal Code

section 550 and Insurance Code section .. 1871.4. 6


8 FARAMARZ FRED KHALILI I SANDRA GARCIA MARTINEZ and HITENDRA 9 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer

business to and from HEALTHCARE FINANCE MANAGEMENT, with the lO knowledge that, and with reckless disregard for whether


12

13 COUNT 29: On or about December 06, 2012, in violation of Section 549 of the Penal Code (FALSE AND FRAUDULENT CLAIM), a FELONY,

14 FARAMARZ FRED KHALILI I SANDRA GARCIA MARTINEZ and HITEND

15 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the



18


20 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA




24


26 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA


28 knowledge that, and with reckless disregard for whether HEALTHCARE FINANCE MANAGEMENT intended to violate Penal Code section 550 and Insurance Code section 1871.4.

FELONYCOMPLAINTWARRANT(DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1


1 COUNT 32: On or about December 28, 2012, in violation of Section

2 549 of the Penal· Code (FALSE AND FRAUDULENT CLAIM), a FELONY, FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA

3 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the 4 knowledge that, and with reckless disregard for whether


6

7 COUNT 33: On or about November 08, 2012, in violation of Section 650 of the Business & Professions Code (REBATES FOR

8 PATIENT REFERRALS) I a FELONY, HITENDRA HIRACHAND SHAH MD, a 9 person licensed under the Healing Arts Division of this Code an

the Chiropractic Initiative Act, did unlawfully offer, deliver, 10 receive, and accept any rebate, refund, commission, preference,

11 patronage dividend, discount, and other consideration as compensation and inducement for referring patients,

12 customers to HEALTHCARE FINANCE MANAGEMENT.

13 COUNT 34: On or about and between September 04, 2012 and

14 December 28, 2012, in violation of Section 2052(b) of the

lS Bus�ness and Professions Code (CONSPIRING IN THE UNAUTHORIZED PRACTICE OF MEDICINE), a FELONY, FARAMARZ FRED ICHALILI, SANDRA

16 GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH MD did unlawfully

17 conspire .with another to practice, attempt to practice, hold himself or herself out as practicing a system and mode of

18 treating the sick and afflicted in the State of California, an

19 conspire with another to diagnose, treat, operate for, and prescribe for an ailment, blemish, deformity, disease,

20 dis�igurement, disorder, injury and physical or mental condition

21 of a person without a valid, unrevoked and unsuspended certificate provided in Chapter 5 of the California Business and

22 Professions Code or obtained in accordance with some other

23 provisions of la�. It is further alleged that pursuant to and for the purpose of carrying out the objects and purposes of the

24 conspiracy, one and more of the conspirators committed the

25 following overt acts:

26 OVERT ACT l

27 Fred Khalili formed Madison Management a California Corporation,

28 in 2009 and operated this business as.the owner and CEO.


Exhibit 1


1 OVERT ACT 2

2 Fred Khalili was in charge of First Choice Medical Group, a

3 Medical Corporation even though he was not a medical doctor.

4 OVERT ACT 3 5

First Choice Medical Group was operated as a clinic that 6 provided medical treatment to workers compensation patients. 7

OVERT ACT 4 8

9 Khalili instructed his attorney to file documents with the Secretary of State in California naming Dr. Julio Westerband,

lO M.D., as the owner and medical director of First Choice Medical

11 Group in 2009.

12 OVERT ACT 5

13 Khalili, and not Dr. Julio Westerband, M.D., controlled all of

l4 the bank accounts that were held by First Choice Medical Group.

15 OVERT ACT 6

16

17 Khalili only paid Dr. Julio Westerband, M.D., a per diem rate when Dr. Westerband, M.D., came to the clinic to see workers

18 compensation patients.

19 OVERT ACT 7

20

21 Dr. Julio Westerband, M.D., was not compensated as the owner an medical director of First Choice Medical Group by Khalili.

22

23 OVERT ACT 8

24 At Khalili's direction, Sandra Martinez hired Dr. Bitendra Shah,

25 M.D. to work as a physician with First Choice Medical Group.

26 OVERT ACT 9

27 Dr. Bitendra Shah and Dr. Craig Chanin prescribed these compoun

28 transdermal creams to workers compensation patients per Fred Khalili's instruction regardless of medical necessity.

FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ HITENDRA SHAH

Exhibit 1

' f


1 OVERT ACT 10

2 Fred Khalili and Sandra Martinez were in charge of First Choice

3 Medical Group, and this medical clinic did not have a medical director between 9/1/12 through 1/1/13.

4

5 OVERT ACT 11

6 Khalili wrote a check (#2375) in the amount of $10, 000 to Curt's 7 Compounding Pharmacy on 12/12/12 for compound distributed in

First Choice Medical Group. 8

9 OVERT ACT 12

lO On 9 /1/12, Khalili entered into a contract with Healthcare

11 Finance Management, to distribute transdermal compound creams manufactured by Curt's Compounding Pharmacy, in Orange County.

12

13 ENHANCEMENT(S)

14 It is further alleged pursuant to Penal Code section 186.ll(a)

15 (1)/(2) (AGGRAVATED WHITE COLLAR CRIME - OVER $500, 000), that as to counts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,

16 17, 18, 19, 20, 21, 22, 23, 24 and 25, defendants FARAMARZ FRED

17 KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH MD engaged in a pattern of related fraudulent felony conduct

18 involving the taking of more than five hundred thousand dollars

19 ($500, 000).

20 As to Count(s) 26, 27, 28, 29 , 30, 31 and 32, it is further

21 alleged pursuant to Penal Code section 12022.6(a) (2) (PROPERT LOSS OVER $200, 000), that FARAMARZ FRED KHALILI, SANDRA GARCIA

22 MARTINEZ and HITENDRA HIRA:CBAND SHAH MD intentionally took,

23 damaged, and destroyed property valued in excess of two hundred thousand dollars ($200, 000) during the commission and attempted

24 commission of the above offense.

25 As to Count(s) 34, it is further alleged pursuant to Penal Code

26 section 12 022. 6 (a) (2) (PROPERTY LOSS OVER $2 00, 000), that FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA

27 HIRACHAND SHAH MD intentionally took, damaged, and destroyed

28 property valued in excess of two hundred thousand dollars ($200, 000) during the commission and attempted commission of the above offense.

FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ, HITENDRA SHAH

Exhibit 1


l

I declare under penalty of perjury, on information and belief, 2

that the foregoing is true and correct. 3

Dated 02- 18-2016 at Orange County, California. 4 KS/AC 15F01341 5

6

7

8

9 RESTITUTION

10

11 [ ] None [ ] $

12 [ x ] To be

13 BAIL RECOMMENDATION:

14

15 FARAMARZ FRED KHALILI $ 250,000.00 SANDRA GARCIA MARTINEZ $ 250,000.00

16 HITENDRA HIRACHAND SHAH MD $ 250,000.00

17 NOTICES:

18

19 The People request that defendant and counsel disclose, within 15 days, all of the materials and information described in Penal

20 Code section 1054.3, and continue to provide any later- acquired

21 materials and information subject to disclosure, and without

22

23

further request or order.

Pursuant to Welfare & Institutions Code §827 and California Rule 24 of Court 5.552, notice is hereby given that the People will see

25 a court order to disseminate the juvenile case file of the defendant/minor, if any exists, to all parties in this action,

26 through their respective attorneys of record, in the prosecution of this case. 27

28


Exhibit 1

CLOSED

U.S. District CourtEastern District of California - Live System (Sacramento)

CRIMINAL DOCKET FOR CASE #: 2:96-cr-00156-EJG-1

Case title: USA v. KhaliliOther court case numbers: 2:95-cr-00379 `6

2:95-cr-00433 `62:95-cr-00440 `62:96-cr-00153 `62:96-cr-00154 `62:96-cr-00157 `62:96-cr-00433 `6

Date Filed: 04/10/1996Date Terminated: 02/21/1997

Assigned to: Senior Judge Edward J. Garcia

Defendant (1)Faramarz Fred KhaliliTERMINATED: 02/21/1997

represented by Brian James Hennigan Irell and Manella 1800 Avenue of the Stars Suite 900 Los Angeles, CA 90067-4276 310-203-7040 TERMINATED: 02/21/1997LEAD ATTORNEYATTORNEY TO BE NOTICEDDesignation: Retained

Pending Counts Disposition

18:1341.F Mail Fraud(1)

8 Months Imprisonment to be served concurrently; TSR 36 Months; S/A $100; Fine waived; surrender date 3/17/97; appeal rights given

26:7206B.F False Statement on Tax Retruns(2)

8 Months Imprisonment to be served concurrently; TSR 36 Months; S/A $100; Fine waived; surrender date 3/17/97; appeal rights given

Highest Offense Level (Opening)Felony

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Terminated Counts Disposition

None

Highest Offense Level (Terminated)

None

Complaints

None

Plaintiff

USA

Date Filed

04/10/1996

04/10/1996

04/12/1996

04/19/1996

04/23/1996

05/09/1996

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1

2

3

4

5

6

Disposition

represented by Daniel S. Linhardt United States Attorney 501 I Street

Docket Text

Suite 10-100 Sacramento, CA 95814 916-554-2700 Email: [email protected] LEAD ATTORNEY ATTORNEY TO BE NOTICED

INFORMATION by US Attorney Daniel S Linhardt Faramarz Fred Khalili (1) count(s) 1, 2 (kb) (Entered: 04/12/1996)

LETTER to court from counsel for plaintiff USA re non-involvement by DFL and GEB (kb) (Entered: 04/12/1996)

NOTICE of hearing arraignment set for 2:00 5/3/96 for Faramarz Fred Khalili (kb) (Entered: 04/12/1996)

NOTICE OF RELATED CASES by plaintiff USA: 2:95-cr-378, 2:95-cr-433, 2:95-cr-435, 2:96-cr-12, 2:96-cr-153, 2:96-cr-1 54, 2:96-157 (old) (Entered: 04/22/1996)

NOTICE of hearing by USA: anaignment re-set for 2:00pm on 5/24/96 for Faramarz Fred Khalili (old) (Entered: 05/01/1996)

ORDER by Honorable Lawrence K. Karlton: IT IS ORDERED that the actions denominated CR Nos. S-96-0153 WBS, S-96-0154 LKK, S-96-0156 DFL and S-96-0157 DFL be, and the same hereby are, reassigned to Judge Edward J. Garcia for all fmiher proceedings, and any date currently set in this reassigned cases only are hereby VACATED, Hencefo11h, the caption on all documents filed in the reassigned cases shall be shown as CR Nos. S-96-01 53 EJG, S-96-0154 EJG, S-96-0156 EJG and S-96-0157 EJG respectively; IT IS FURTHER ORDERED that the Clerk of the Comi make appropriate adjustment in the

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assignment of criminal cases to compensate for these reassignments (cc: all counsel) (old) (Entered: 05/09/ 1996)

05/28/ 1996 7 NOTICE of hearing by USA: anaignment VACATED (old) (Entered: 05/30/1996)

06/ 14/1996 8 NOTICE of hearing by USA the hearing set for 6/14/96 at 2:00pm is removed from calendar (kb) (Entered: 06/ 17 / 1996)

09/24/1996 9 NOTICE of hearing by USA arraignment set for 9:00 9/27/96 for Faramarz Fred Khalili (kb) (Entered: 09/25/1996)

09/27/ 1996 10 WAIVER oflndictment by defendant Faramarz Fred Khalili (old) (Entered: 09/30/1996)

09/27/1996 11 PLEA Agreement as to Faramarz Fred Khalili (old) (Entered: 09/30/ 1996)

09/27/ 1996 12 SCHEDULE FOR DISCLOSURE OF PSR as to defendant Faramarz Fred Khalili (old) (Entered: 09/30/ 1996)

09/27/1996 13 MINUTES before Judge Edward J Garcia: Faramarz Fred Khalili enters guilty plea to 2 counts of information anaignment was held on 9/27196; sentencing hearing set for 9:00am on 116/97 for Faramarz Fred Khalili; dft plead guilty to Rule 20 Indictment received (C3-95-l 14 District N DA) CIR P McNamara (old) (Entered: 09/30/ 1996)

09/27/ 1996 14 NOTICE TO DEFENDANT BEING RELEASED as to dft Faramarz Khalilt (old) (Entered: 09/30/1996)

10/04/1996 15 ORDER by Judge Edward J. Garcia relating case(s) with member case(s) number CR-S-96-157 EJG (cc: all counsel) (old) (Entered: 10/04/1996)

10/08/1996 16 PRESENTENCE NOTIFICATION as to defendant Faramarz Fred Khalili (kb) (Entered: 10/09/ 1996)

10/ 15/ 1996 17 TRANSCRIPT of Change of plea hearing on 9/27196 by CIR Margaret A McNamara (kb) (Entered: 10/ 16/1996)

01117/ 1997 18 NOTICE of hearing: sentencing hearing reset for 9:00am on 2/3/97 for Faramarz Fred Khalili (old) (Entered: 01122/ 1997)

01122/ 1997 19 RELATED CASE ORDER by Judge Edward J. Garcia relating case(s) with members cases 2:96-cr-378 EJG; 2:95-cr-433; 2:95-cr-435; 2:95-cr-440; 2:96-cr-012; 2:96-cr-153; 2:96-cr-154; 2:96-cr-156; 2:96-cr-1 57; 2:95-cr-431; 2:97-cr-018 EJG (cc: all counsel) (old) (Entered: 01122/1997)

01123/1997 20 NOTICE by plaintiff USA of related case 2:96-cr- l 98 GEB (old) (Entered: 01124/1997)

01124/ 1997 21 NOTICE OF MOTION AND MOTION pursuant to Seeton 5Kl.l of the Federal Sentencing Guidelines for a downward depa1ime by USA as to Faramarz Fred Khalili; hearing set for 9:00 1127/97 (kdc) (Entered: 01127/ 1997)

01129/1997 22 ORDER by Judge Edward J. Garcia relating case(s) 2:96cr156 with member case 2:96cr198 (cc: all counsel) (kb) (Entered: 01129/1997)

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01129/1997 23 ORDER by Judge Edward J. Garcia sentencing hearing RESET for 9:00 2/18/97 for Faramarz Fred Khalili (cc: all counsel) (kb) (Entered: 01130/1997)

02/10/1997 24 NOTICE of hearing sentencing hearing continued to 9:00 2/21197 for Faramarz Fred Khalili (kb) (Entered: 02/12/1997)

02/10/1997 25 MOTION for coITection of presentence rep01i by defendant Faramarz Fred Khalili hearing set for 9:00 2/18/97 before Judge Edward J. Garcia (kb) (Entered: 02/13/1997)

02/2111997 26 MINUTES before Judge Edward J. Garcia sentencing Faramarz Fred Khalili (1) count(s) 1, 2. 8 Months Imprisonment to be served concurrently with CR S 96-198 EJG; TSR 36 Months; SIA $100; Fine waived; surrender date 3/17/97; appeal rights given , terminating defendant Faramarz Fred Khalili case te1minated ; CIR Peggy McNamara (old) (Entered: 02/26/1997)

02/2111997 27 SENTENCING memorandum regarding Faramarz Fred Khalili (old) (Entered: 02/26/1997)

02/27/1997 28 RELATED CASE ORDER by Judge Edward J Garcia relating lead case CRS 95-0379 EJG with member case CRS 97-043 MLS (cc: all counsel) (ljr) (Entered: 02/27/1997)

02/28/1997 29 JUDGMENT and Commitment issued as to Faramarz Fred Khalili by Judge Edward J Garcia (old) (Entered: 03/03/1997)

03/1111997 30 MOTION to modify sentence by defendant Faramarz Fred Khalili (kb) (Entered: 03/12/1997)

03/17/1997 31 OPPOSITION by USA to motion to modify sentence [30-1] (ndd) (Entered: 03/18/1997)

03/2111997 32 JUDGMENT and Commitment returned executed on 3/17 /97 as to Faramarz Fred Khalili (ndd) (Entered: 03/25/1997)

03/3111997 33 ORDER by Judge Edward J Garcia ORDERING: dft's motion to modify his sentence is DENIED (cc: all counsel) (old) (Entered: 03/3111997)

08/22/1997 34 RELATED CASE ORDER by Judge Edward J. Garcia ORDERED that relating 2:96cr156 with member of case 2:96cr466 (cc: all counsel) (ndd) (Entered: 08/22/1997)

09/18/1997 35 RELATED CASE ORDER by Judge Edward J. Garcia relating er 96-156 with member cases er 97-463 and er 97-464 (cc: all counsel) (ndd) (Entered: 09/18/1997)

11106/1997 36 RELATED CASE ORDER by Judge Edward J. Garcia RELATING new case 2:97-cr-512 with lead case 2:95-cr-379 (cc: all counsel) (kdc) (Entered: 11106/1997)

12/12/1997 37 RELATED CASE ORDER by Judge Edward J Garcia ORDERING: the action denominated 2:96-cr-104 GEB is reassigned to Judge Garcia; the clerk is to make the appropriate adjustment in the assignment of criminal cases (cc: all counsel) (old) (Entered: 12/12/1997)

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01120/1998 38 PROBATION Form 22 - Transferring Faramarz Fred Khalili to Central District of California by Judge Edward J Garcia (old) (Entered: 01123/1998)

01130/1998 39 TRANSMITTAL of documents including ce1iified of indictment, transferral order, judgment and sentencing and docket sheet (ndd) (Entered: 01130/1998)

02/06/1998 40 RELATED CASE NOTICE by plaintiff USA (ljr) (Entered: 02/09/1998)

02/09/1998 41 RECEIPT of Acknowledgment of transmittal of documents for defendant Faramarz Fred Khalili by Central District of CA (ndd) (Entered: 02/10/1998)

02/1111998 42 RELATED CASE ORDER by Judge Edward J. Garcia ORDERED that relating case 2:96cr156 with member of case 2:97cr578 (cc: all counsel) (ndd) Modified on 02/ 13/1998 (Entered: 02/1111998)

04/16/1998 43 NOTICE OF RELATED CASES by plaintiff USA - relating cases 2:98CR175 and 2:98CR173 (old) (Entered: 04/17 /1998)

04/27/1998 44 RELATED CASE ORDER by Judge Edward J. Garcia that the actions denominated CRS 98-173 WBS and CRS 98-175 MLS be and the same hereby are REASSIGNED to Judge Edward J Garcia (cc: all counsel) (ljr) (Entered: 04/27 /1998)

05/08/1998 45 NOTICE by plaintiff USA relating CR F-98-5079 REC to this case (old) (Entered: 05/1111998)

07/10/1998 46 RELATED CASE ORDER by Judge Edward J. Garcia CRS 98-079 GEB is REASSIGNED to EJG (cc: all counsel) (ljr) (Entered: 07/10/1998)

07/14/1998 47 NOTICE of related cases by plaintiff USA re CRS 98-297 WBS (ljr) (Entered: 07/16/1998)

07/16/1998 48 RELATED CASE ORDER by Judge Edward J. Garcia CRS 98-297 WBS is REASSIGNED to EJG (cc: all counsel) (ljr) (Entered: 07/16/1998)

08/06/1998 49 NOTICE by plaintiff USA of related cases (old) (Entered: 08/07 /1998)

08/10/1998 50 RELATED CASE ORDER by Judge Edward J. Garcia ORDERING relating LEAD case(s) 2:95-cr-379 EJG with member cases 2:98-cr-143; CRS 98-143 DFL REASSIGNED to EJG; reassigned case shall be shown as CR S 98-143 EJGJ (cc: all counsel) (ljr) (Entered: 08/10/1998)

08/1111998 51 NOTICE by plaintiff USA of related cases (old) (Entered: 08/12/1998)

08/17/1998 52 RELATED CASE ORDER by Judge Edward J. Garcia ORDERING relating LEAD case 2:95-cr-379 with member cases 2:98-cr-346 ; CR S 98-346 LKK REASSIGNED to EJG (cc: all counsel) (ljr) (Entered: 08/17/1998)

10/0111998 53 NOTICE by plaintiff USA of related case CR S-98-383 DFL (kh) Modified on 10/19/1998 (Entered: 10/06/1998)

12/0111999 54 NOTICE ofrelated cases by plaintiff 96-cr-156 ... 99-cr-450 (ch) (Entered: 12/02/1999)

0113112000 55 RELATED CASE ORDER by Judge Edward J. Garcia ordering that case 2:96cr156 is related to member case numbers 2:95cr379, 2:95cr433, 2:95cr435,

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2:95cr440, 2:96cr0012, 2:96crl53, 2:96cr154, 2:96cr157, 2:95cr431, 2:97cr018, 2:97cr043, 2:97cr271, 2:97cr272, 2:97cr273, 2:97cr274, 2:97cr276, 2:97cr277, 2:96cr466, 2:97cr463, 2:97cr464, 2:97cr512, 2:96cr104, 2:97cr578, 2:98cr173, 2:98crl 75, 2:98cr079, 2:98cr297, 2:98cr143, 2:98cr346, 2:98cr383, 2:99cr450, 2:00cr025 (cc: all counsel) (as) (Entered: 01/31/2000)

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2/20/2018 Board of Chiropractic Examiners

http://www2.dca.ca.gov/pls/wllpub/WLLQRYNA$LCEV2.QueryView?P_LICENSE_NUMBER=19178&P_LTE_ID=808 1/2

BOARD OF CHIROPRACTIC EXAMINERSLicensee Name: KHALILI FARAMARZ FREDLicense Type: ChiropractorLicense Number: 19178License Status: REVOKED DefinitionExpiration Date: January 31, 2001Issue Date: January 01, 1988Address: P.O. BOX 9711City: NEWPORT BEACHState: CAZip: 92658County: ORANGEActions: Yes

Related Licenses/Registrations/Permits

No records returned

Disciplinary Actions

May 18, 1999 ACCUSATION FILEDJuly 28, 2000 LICENSE REVOKEDJanuary 25, 2012 PET. FOR REINSTATEMENT FILEDFebruary 28, 2013 PET. FOR REINSTATEMENT DENIEDPublic Record Action(s)

CITATIONS

No records returned

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Exhibit 3

2/20/2018 Board of Chiropractic Examiners

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Exhibit 4

Exhibit 5

4615 documents - first choice medical - dir.ca.gov · vs. ) 10 ) 11 faramarz fred khalili 01/10/61...

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