LOS ANGELES, CA – A Southern California couple has agreed to pay $10 million to settle allegations of conducting a fraudulent scheme targeting Medicare and Medi-Cal, federal and state authorities announced.
Dr. Mohammad Rasekhi, a physician and founder of Southern California Medical Center, and his wife, Sheila Busheri, the chief executive officer of the same organization, were accused of submitting false claims and engaging in illegal kickbacks through multiple businesses they own.
According to the California Department of Justice, the alleged fraudulent activities took place between 2014 and 2021. The couple’s medical group, which operates as a non-profit, Federally Qualified Health Center, provides general healthcare services to underserved communities. In addition, they co-own Universal Diagnostic Laboratories, a medical testing facility in Van Nuys.
Court documents allege that the couple defrauded federal healthcare programs by submitting false billing claims and violating the Anti-Kickback Statute through their network of clinics and laboratory services.
Authorities claim the couple paid third-party marketers illegal kickbacks to refer Medicare and Medi-Cal beneficiaries to their clinics in exchange for financial incentives. In violation of federal law, they also allegedly paid above-market rents to other clinics for patient referrals, provided discounted lab services to clinic staff, and forgave outstanding balances in return for referrals to their diagnostic lab facility.
Officials said these actions enabled the couple to receive excessive reimbursements from Medi-Cal, diverting resources meant for low-income families, the elderly, and other vulnerable populations.
The settlement agreement requires the couple to pay $6 million to the federal government and $4 million to the State of California.
In a statement, California Attorney General Rob Bonta condemned the couple’s actions, emphasizing the harm caused to patients and the broader healthcare system.
“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 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 a separate case, Dr. Rasekhi surrendered his medical license in December 2024 after the Medical Board of California filed a formal accusation against him. The complaint alleged that Rasekhi had sexually abused three women under his medical care, as reported by the Los Angeles Times.
Rather than contest the allegations in a hearing, Rasekhi opted to retire from medicine and waived his right to appeal the charges. Both Rasekhi and Busheri have denied all allegations related to the fraud case.
The couple’s medical group operates clinics in multiple locations, including Van Nuys, Pomona, Pico Rivera, Long Beach, El Monte, and Woodland Hills. Their diagnostic laboratory, which was a central part of the alleged fraudulent activities, is located in Van Nuys.
Court records describe the Southern California Medical Center as a non-profit health provider focused on delivering care to underserved populations. However, prosecutors said that under the couple’s leadership, the organization engaged in financial misconduct, prioritizing profit over patient care.
Authorities emphasized that the case highlights broader concerns about fraud in federally funded healthcare programs, prompting calls for stricter oversight and regulatory reforms.
As part of the settlement, the couple did not admit wrongdoing but agreed to comply with monitoring measures to ensure future compliance with healthcare billing regulations.
Prosecutors said the case underscores the importance of safeguarding public programs designed to assist vulnerable communities and emphasized that investigations into healthcare fraud remain a priority for state and federal authorities.
The California Department of Justice urged whistleblowers and healthcare workers to report fraudulent activities through its confidential reporting channels.
Officials also assured patients and beneficiaries of Medi-Cal and Medicare that services would not be interrupted as a result of the settlement.
Further updates on the case and any legal proceedings are expected as authorities continue to monitor compliance with the settlement agreement.
