Ringleader Of Healthcare Fraud Conspiracy Arrested

July 9, 2015

On June 9, 2015, the FBI arrested Los Angeles-based chiropractor Bahar Gharib-Danesh, the alleged ringleader of a vast healthcare conspiracy first made public in a whistleblower lawsuit filed by Cotchett, Pitre & McCarthy (“CPM”). According to CPM’s lawsuit, which became public early this year, Danesh controls seven pain management clinics in Southern California. Together, these Clinics see hundreds of patients per day under the guise of “pain management” diagnosis and treatment. 

According to CPM’s lawsuit, the Clinics have instituted and engaged in a pattern and practice of ordering dozens of tests, treatments, and medications for all patients, regardless of injury or proper medical diagnosis. Many of these procedures are never performed, and patients often never receive the medications for which the insurers pay. This scheme subjects the Clinics’ patients to dangerous medical treatments and medications that are unnecessary, unproven, and conducted solely for billing purposes. Each stage of the patients’ care is designed to fraudulently maximize billing while providing no actual medical care or benefit.    

The FBI arrested Danesh this morning in cooperation with the California Department of Insurance. According to a government press release, Danesh was arrested for the same conduct alleged in CPM’s lawsuit. The FBI also arrested chiropractor Na Young Eoh, and has indicted psychologist John Terrence, both of whom are also named as defendants in CPM’s lawsuit.

CPM attorney Justin T. Berger stated: “The FBI’s arrest of Danesh vindicates our brave whistleblower client. Rampant fraud is raising healthcare costs for all Californians, and we hope that additional arrests will follow.”

The case is being handled by CPM attorneys Justin T. Berger and Robert B. Hutchinson.

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