Attorney General Bonta Combats Medi-Cal Fraud, Securing a $10 Million Settlement Against Southern California Provider

OAKLAND — Attorney General Rob Bonta today announced a settlement with the owners of R&B Medical Group, Universal Diagnostic Laboratories, and Southern California Medical Center for submitting false claims to the Medicare and Medi-Cal programs. The settlement resolves allegations that Dr. Mohammad Rasekhi and his wife, Sheila Busheri engaged in a kickback scheme and made self-referrals during the years between 2014 and 2021. As part of today's settlement, Dr. Mohammad Rasekhi and Sheila Busheri, will pay a total of $10 million, with the State of California receiving $4 million and the federal government receiving $6 million. 
 
“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 Attorney General 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. I am grateful for the collaboration of our local, state, and federal partners in this important mission.”
 
From January 1, 2014, to December 31, 2021, Dr. Rasekhi and his wife are alleged to have falsely and knowingly billed government healthcare programs by paying third-party marketers to induce patient referrals. The couple also allegedly billed government healthcare programs through self-referring patients to their own laboratories in violation of the Stark Law. In addition, the couple allegedly falsely and knowingly billed government healthcare programs as a result of paying kickbacks for referrals in violation of the Anti-Kickback Statute. By engaging in a kickback scheme for referrals, paying third-party marketers, and engaging in self-referral to their own labs, they are alleged to have received excess reimbursement from Medi-Cal, California’s Medicaid program.
 
The California Department of Justice’s DMFEA protects Californians by investigating and prosecuting those who defraud the Medi-Cal program as well as those who commit elder abuse. These settlements are made possible only through the coordination and collaboration of governmental agencies, as well as the critical help from whistleblowers who report incidences of abuse or Medi-Cal fraud at oag.ca.gov/dmfea/reporting.

The Division of Medi-Cal Fraud and Elder Abuse receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $69,244,976 for Federal fiscal year (FY) 2025. The remaining 25 percent is funded by the State of California. FY 2025 is from October 1, 2024 through September 30, 2025.

A copy of the settlement agreement can be found here.