{"id":57186,"date":"2024-08-08T17:21:44","date_gmt":"2024-08-09T00:21:44","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=57186"},"modified":"2024-08-08T17:21:44","modified_gmt":"2024-08-09T00:21:44","slug":"dental-company-and-ex-owners-pay-6-3-million-to-resolve-false-covid-relief-claims","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=57186","title":{"rendered":"Dental Company and Ex-Owners Pay $6.3 Million to Resolve False COVID-Relief Claims"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n

\"TwoWest Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.), a Brentwood-based company that operates a network of dental offices in Southern California, and its founders and former owners, Drs. Soleyman Cohen-Sedgh, Farid Pakravan, and Farhad Manavi paid $6.3 million to resolve allegations that they knowingly violated the False Claims Act, officials allege.<\/span><\/p>\n

These violations involve seven improper loans that West Coast Dental Services Inc. (West Coast Dental) and affiliated dental offices received under the Paycheck Protection Program (PPP).<\/span><\/p>\n

Additionally, authorities reported that Dr. Manavi’s Beverly Hills-based real estate investment firm, City Real Estate Holdings Inc., had paid an additional $35,149.82 to resolve any potential False Claims Act liability in connection with a different PPP loan.<\/span><\/p>\n

\"doctor<\/a>
Photo by Olga Guryanova<\/a> on Unsplash<\/a><\/figcaption><\/figure>\n

According to officials, the claims resolved by the settlement are allegations only. No liability has been determined.<\/span><\/p>\n

\u201cCompanies such as these that depleted crucial pandemic-assistance funding will be held accountable under the False Claims Act,\u201d said U.S. Attorney Martin Estrada. \u201cThis resolution evidences our office\u2019s earnest commitment to ensure that companies act with the utmost integrity and compunction.\u201d<\/span><\/p>\n

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which Congress passed in March 2020, established the PPP, an emergency loan program that the Small Business Administration oversees. <\/span><\/p>\n

Its goal was to aid small businesses that were having trouble paying their employees and other business expenses during the COVID-19 pandemic.<\/span><\/p>\n

The type of business the borrower operated and the number of employees employed by the borrower and its corporate affiliates were two factors that determined whether an applicant qualified for a PPP loan as a small business.<\/span><\/p>\n

In 2021, Congress offered a second round of forgivable loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. Under PPP rules, second-draw loans were strictly limited to businesses with 300 employees or less. <\/span><\/p>\n

Borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications when applying for PPP loans and loan forgiveness.<\/span><\/p>\n

Federal authorities alleged that West Coast Dental and six of its affiliated dental practices received seven improper second-draw PPP loans and subsequent forgiveness of these loans based on false certifications.<\/span><\/p>\n

Also, the companies qualified for the loans even though they were ineligible because the dental practices collectively employed more than 300 individuals. <\/span><\/p>\n

The United States further alleged that West Coast Dental and its affiliates failed to disclose common ownership of the affiliated dental offices in their separate PPP applications.\u00a0 <\/span><\/p>\n

The United States also alleged that City Real Estate Holdings Inc., which received a PPP loan, was ineligible to receive the loan under PPP rules, because it is a passive business operated for investment purposes. <\/span><\/p>\n

City Real Estate Holdings Inc. sought and received forgiveness of its total loan amount.<\/span><\/p>\n

\u201cPPP loans were intended to support small businesses facing difficult economic times due to the COVID-19 pandemic,\u201d said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department\u2019s Civil Division. \u201cThe Justice Department will continue to hold borrowers who improperly received and sought forgiveness of PPP loans accountable for their actions.\u201d<\/span><\/p>\n

\u201cThis settlement sends a signal to wrongdoers that evidence of improper conduct will be brought to light,\u201d said Special Agent in Charge Weston King for Small Business Administration\u2019s Office of Inspector General (SBA OIG)\u2019s Western Region. \u201cOur office will remain relentless in the pursuit of those who seek to exploit SBA\u2019s vital pandemic response programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their exceptional efforts and collaboration in pursuit of justice.\u201d<\/span><\/p>\n

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Relator LLC, a limited liability corporation formed by California attorneys Anoush Hakimi and Peter Shahriari.\u00a0 <\/span><\/p>\n

Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. <\/span><\/p>\n

The qui tam case is captioned\u00a0United States ex rel. Relator LLC v. West Coast Dental Services Inc., et al.<\/i>, CV 22-3812-MCS (MARx) (C.D. Cal.). Relator LLC will receive approximately $507,000 as its share of the total settlement.\u00a0\u00a0<\/span><\/p>\n

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department\u2019s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney\u2019s Office for the Central District of California, with assistance from the Small Business Administration\u2019s Office of General Counsel and Office of the Inspector General.<\/span><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

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