West Coast Dental, False Claims Act, California 2023
West Coast Dental Administrative Services LLC, a network of dental offices in Southern California, and its founders and former owners, Drs. Soleyman Cohen-Sedgh, Farid Pakravan and Farhad Manavi, have paid $6.3 million to resolve allegations that they knowingly violated the False Claims Act in connection with seven improper loans that West Coast Dental Services Inc. (West Coast Dental) and affiliated dental offices received under the Paycheck Protection Program (PPP).
The United States 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 that the companies qualified for the loans even though they were ineligible because the dental practices collectively employed more than 300 individuals.
Additionally, City Real Estate Holdings Inc., a real estate investment company owned by Dr. Manavi, has paid an additional $35,149.82 to resolve its potential liability under the False Claims Act in connection with a separate PPP loan.
According to the U.S. government, PPP loans were intended to support small businesses facing difficult economic times due to the COVID-19 pandemic. Companies such as West Coast Dental that improperly received and sought forgiveness of PPP loans will be held accountable under the False Claims Act.
“Companies such as these that depleted crucial pandemic-assistance funding will be held accountable under the False Claims Act,” said U.S. Attorney Martin Estrada for the Central District of California.
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 company. The resolution of claims was made on March 2023.
Defendant information: West Coast Dental Administrative Services LLC, Soleyman Cohen-Sedgh, Farid Pakravan, Farhad Manavi, City Real Estate Holdings Inc.
Criminal charges: False Claims Act violation
City and state: Los Angeles, California
Date: March 2023
Sentence: $6.3 million settlement
Dollar amounts: $6.3 million, $35,149.82
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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