FILED 1 SUPERIOR COURT OF CALIFORNIA 2 SUPERIOR COURT OF CALIFORNIA COUNTY OF OFtANGE CENTRAL JUSTICE CENTER MAR 01 2016 COUNTY OF ORANGE, CENTRAL JUSTICE CENTER ALAN CARLSON, Clerk of the Court 3 BY: 4 C. CEPEDA ,DEPUTY 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 THE PEOPLE OF THE STATE OF CALIFORNIA, ) ) Plaintiff, ) ) ) vs. ) ) FARAMARZ FRED KHALILI 01/10/61 ) N9365659 ) AKA FARAMARZ KHALILI ) FAMARZ FRED KHALILI ) SALMI ARAMARZ ) SANDRA GARCIA MARTINEZ 05/24/68 ) C6548229 ) AKA SANDRA MARTINEZ ) SANDRA GARCIA ) HITENDRA HIRACHAND SHAH MD 01/01/47 ) C1825179 ) ) Defendant(s)) FELONY COMPLAINT WARRANT AMENDMENT 1 No.15CF2507 OCDA WC14110013 20 The Orange County District Attorney charges that in Orange 21 County, California, the law was violated as follows: 22 23 24 25 26 27 28 FELONY COMPLAINT WARRANT (DA CASE#15F01341) OC DNA NOT ON FILE: FARAIVIARZ KHALILI, SANDRA MARTINEZ HffENDRA SHAH FARAMARZ FRED KHALI= OCDA WC14110013 PAGE 2 1 COUNT 1: On or about and between September 13, 2012 and 2 December 28, 2012, in violation of Section 550(a)(5) of the Penal Code (CONSPIRACY TO COMMIT INSURANCE FRAUD), a FELONY, 3 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA 4 H/RACHAND SHAH MD did unlawfully conspire with HITENDR HIRACHAND SHAH, SANDRA GARCIA MARTINEZ, FARAMARZ FRED KHALILI, 5 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 conspiracy, one and more of the conspirators committed the 9 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 Healthcare 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 OVERT ACT 3 21 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 OVERT ACT 4 25 26 Fred Khalili and Sandra Martinez ordered the physician's 27 assistants who worked at First Choice to prescribe at least two 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 KHAULI, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALIL' OCDA WC14110013 PAGE 3 1 OVERT ACT 5 2 Dr. Hitendra Shah and Dr. Craig Chanin prescribed these compound 3 transdermal creams to workers compensation patients per Fre Khalili's 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 each 14 patient which would then be directly shipped from Curt's 15 Compounding Pharmacy in Orange County to each patient. 16 OVERT ACT 8 17 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 OVERT ACT 9 21 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 KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACEAND SHAH 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 KHAUU, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALIL' OCDA WC14110013 PAGE 4 1 COUNT 3: On or about and between September 05, 2012 and 2 December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 3 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH 4 MD, with the intent to defraud, did knowingly and unlawfull prepare, make, and subscribe a material writing, with the intent 5 to present and use it, and to allow it to be presented to ALAS INTERNATIONAL, in support of a false and fraudulent claim, an 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 550(a)(5) of the 9 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH 10 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 ANTE 12 BLUE CROSS, in support of a false and fraudulent claim, and did 13 aid and abet, and solicit another to do the same. 14 COUNT 5: On or about and between September 06, 2012 an 15 December 13, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 16 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 550(a)(5) of the 22 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 23 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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/ CHART/S, in support of a false and fraudulent claim, and did ai 26 and abet, and solicit another to do the same. 27 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED NEAL= ODA WC14110013 PAGE 5 1 COUNT 7: On or about and between September 04, 2012 and 2 December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 3 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 aid 6 and abet, and solicit another to do the same. 7 COUNT 8: 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 HITENDRA HIRACHAND S 10 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 in support of a false and fraudulent claim, and did ai 13 and abet, and solicit another to do the same. 14 COUNT 9: On or about and between September 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 KHAL/LI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 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 22 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 23 FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 CRUX & FORESTER, in support of a false and fraudulent claim, and did 26 aid and abet, and solicit another to do the same. 27 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALILI OCDA WC14110013 PAGE 6 1 COUNT 11: On or about and between September 04, 2012 and 2 December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 3 FRED KHALIL/, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH 4 MD, with the intent to defraud, did knowingly and unlawfully prepare, make, and subscribe a material writing, with the intent 5 to present and use it, and to allow it to be presented to 6 DISNEY, in support of a false and fraudulent claim, and did ai and abet, and solicit another to do the same. 7 COUNT 12: On or about and between September 04, 2012 an 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 HIRACHAND SHAH 10 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 13 aid and abet, and solicit another to do the same. 14 COUNT 13: On or about and between September 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 KHALIL/, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND S 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 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 22 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 23 FRED KHAL/LI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 FIREMAN'S FUND, in support of a false and fraudulent claim, an 26 did aid and abet, and solicit another to do the same. 27 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALIL/ ODA WC14110013 PAGE 7 1 COUNT 15: On or about and between September 04, 2012 an 2 December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 3 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 HARTFORD, in support of a false and fraudulent claim, and did 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 KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH 10 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. 14 COUNT 17: On or about and between September 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 KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND S 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 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 KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND S 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 PACIFIC COMP, in support of a false and fraudulent claim, an 26 did aid and abet, and solicit another to do the same. 27 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALIU, SANDRA MARTINEZ, HITENDRA SHAH FARAMARZ FRED KHALIL' OCDA WC14110013 RAGE 8 1 COUNT 19: On or about and between September 04, 2012 an 2 December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 3 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND S MD, with the intent to defraud, did knowingly and unlawfull prepare, make, and subscribe a material writing, with the intent 5 to present and use it, and to allow it to be presented to SEABRIGHT, in support of a false and fraudulent claim, and did 6 aid and abet, and solicit another to do the same. 4 7 9 10 11 12 13 COUNT 20: On or about and between September 04, 2012 an December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH MD, with the intent to defraud, did knowingly and unlawfully prepare, make, and subscribe a material writing, with the intent to present and use it, and to allow it to be presented to SEDWICK INS., in support of a false and fraudulent claim, an did aid and abet, and solicit another to do the same. 14 COUNT 21: On or about and between September 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 KHALIL/, SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 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 (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 23 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND S MD, with the intent to defraud, did knowingly and unlawfull 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 TRAVELERS, in support of a false and fraudulent claim, and di 26 aid and abet, and solicit another to do the same. 27 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAULI, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALIL' OCDA WC14110013 PAGE 9 1 COUNT 23: On or about and between September 04, 2012 an 2 December 20, 2012, in violation of Section 550(a)(5) of the Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ 3 FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND 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 and December 20, 2012, in violation of Section 550(a)(5) of the 9 Penal Code (INSURANCE FRAUD - WRITTEN CLAIM), a FELONY, FARAMARZ FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA HIRACHAND SHAH 10 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 ZENITH, in support of a false and fraudulent claim, and did aid 13 and abet, and solicit another to do the same. 14 COUNT 25: On or about and between September 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 HITENDRA HIRACHAND S 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 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, SANDRA GARCIA MARTINEZ and HITENDRA 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 27 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAUU, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALILI ODA WC14110013 PAGE 10 1 COUNT 27: On or about November 21, 2012, in violation of Section 2 549 of the Penal Code (FALSE AND FRAUDULENT CLAIM), a FELONY, FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITEND 3 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer 4 business to and from HEALTHCARE FINANCE MANAGEMENT, with the 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 7 COUNT 28: On or about November 29, 2012, in violation of Section 549 of the Penal Code (FALSE AND FRAUDULENT CLAIM), a FELONY, 8 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA 9 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the 10 knowledge that, and with reckless disregard for whether 11 HEALTHCARE FINANCE MANAGEMENT intended to violate Penal Code section 550 and Insurance Code section 1871.4. 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, SANDRA GARCIA MARTINEZ and EXTEND 15 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the 16 knowledge that, and with reckless disregard for whether 17 HEALTHCARE FINANCE MANAGEMENT intended to violate Penal Code section 550 and Insurance Code section 1871.4. 18 19 COUNT 30: On or about December 13, 2012, in violation of Section 549 of the Penal Code (FALSE AND FRAUDULENT CLAIM), a FELONY, 20 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA 21 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the 22 knowledge that, and with reckless disregard for whether 23 HEALTHCARE FINANCE MANAGEMENT intended to violate Penal Code section 550 and Insurance Code section 1871.4. 24 25 COUNT 31: On or about December 20, 2012, in violation of Section 549 of the Penal Code (FALSE AND FRAUDULENT CLAIM), a FELONY, 26 FARAMARZ FRED KHALILI, SANDRA GARCIA MARTINEZ and HITENDRA 27 HIRACHAND SHAH MD did unlawfully solicit, accept, and refer business to and from HEALTHCARE FINANCE MANAGEMENT, with the 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. FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHAULI, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALILI OCDA WC14110013 PAGE 11 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 4 business to and from HEALTHCARE FINANCE MANAGEMENT, with the 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 7 COUNT 33: On or about November 08, 2012, in violation of Section 650 of the Business & Professions Code (REBATES FOR PATIENT REFERRALS), 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, clients, an 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 15 Business and Professions Code (CONSPIRING IN THE UNAUTHORIZED PRACTICE OF MEDICINE), a FELONY, FARAMARZ FRED KHALILI, 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 disfigurement, 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 law. 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 1 27 Fred Khalili formed Madison Management a California Corporation, 28 in 2009 and operated this business as the owner and CEO. FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALILI, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALIL/ OCDA WC14110013 PAGE 12 1 OVERT ACT 2 2 Fred Khalili was in charge of First Choice Medical Group, 3 Medical Corporation even though he was not a medical doctor. 4 OVERT ACT 3 5 6 First Choice Medical Group was operated as a clinic that provided medical treatment to workers compensation patients. 7 OVERT ACT 4 9 Khalili instructed his attorney to file documents with the Secretary of State in California naming Dr. Julio Westerband, 10 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 14 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 OVERT ACT 8 23 24 At Khalili's direction, Sandra Martinez hired Dr. Hitendra Shah, 25 M.D. to work as a physician with First Choice Medical Group. 26 OVERT ACT 9 27 Dr. Hitendra 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 KHALIL!, SANDRA MARTINEZ HITENDRA SHAH FARAMARZ FRED KHALIL' ODA WC14110013 PAGE 13 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 4 director between 9/1/12 through 1/1/13. 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 8 First Choice Medical Group. 9 OVERT ACT 12 10 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 186.11(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 KHALIL', 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) (PROPERTY LOSS OVER $200,000), that FARAMARZ FRED KHALIL', SANDRA GARCIA 22 MARTINEZ and HITENDRA HIRACHAND 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 12022.6(a)(2) (PROPERTY LOSS OVER $200,000), that 27 FARAMARZ FRED KHALIL', SANDRA GARCIA MARTINEZ and HITENDRA 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 FARAMARZ FRED KHALILI OCDA WC14110013 PAGE 14 1 2 I declare under penalty of perjury, on information and belief, that the foregoing is true and correct. 3 Dated 02-18-2016 at Orange County, California. 4 KS/AC 15F01341 5 6 TONY STRICT ATTORNEY 7 b: Deputy Die Atto 9 RESTITUTION MED 10 11 [ ] None [ $ 12 [ X ] To be de ermined 13 BAIL RECOMMENDATION: 14 15 FARAMARZ FRED KHALIL' - $ 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 further request or order. 22 23 Pursuant to Welfare & Institutions Code 5827 and California Rule 24 of Court 5.552, notice is hereby given that the People will seek 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 27 of this case. 28 FELONY COMPLAINT WARRANT (DA CASE# 15F01341) OC DNA NOT ON FILE: FARAMARZ KHALIL!, SANDRA MARTINEZ HITENDRA SHAH