A Brentwood-based dental office conglomerate and its founders have coughed up millions to settle allegations of fraudulently tapping COVID relief funds. West Coast Dental Administrative Services LLC, which oversees a suite of dental practices across Southern California, joined hands with its former owners Drs. Soleyman Cohen-Sedgh, Farid Pakravan, and Farhad Manavi to pay a hefty $6.3 million to the fed as a resolution to accusations of breaching the False Claims Act, per an announcement from the U.S. Attorney's Office.

The dental entity and, its former honchos found themselves in hot water over improperly secured loans through the Paycheck Protection Program (PPP) – intended as lifelines for small businesses during the pandemic storm. These loans are at the center of a dispute, with claims that West Coast Dental and its affiliates snagged seven such loans illegitimately. To add to their woes, another business, City Real Estate Holdings Inc., owned by Dr. Manavi, forked over an additional $35,149.82 to settle claims of ineligibility under the very same act, according to a press release from the U.S. Department of Justice.

At the heart of the scandal is the allegation that the dental practices collectively employed well over the 300-employee ceiling for second-draw PPP loans. Despite this, they managed to secure and even obtain forgiveness for these funds, sparking a federal investigation. “Companies such as these that depleted crucial pandemic-assistance funding will be held accountable under the False Claims Act,” United States Attorney Martin Estrada is quoted as saying in the DOJ's announcement.

Meanwhile, Principal Deputy Assistant Attorney General Brian M. Boynton, the top dog at the Justice Department’s Civil Division, vowed a relentless pursuit of borrowers who misused PPP loans – ensuring the heavy hand of justice weighs upon those who step out of line. “The Justice Department will continue to hold borrowers who improperly received and sought forgiveness of PPP loans accountable for their actions,” Boynton said.

The settlement concludes a whistleblower lawsuit brought under the qui tam provisions of the False Claims Act by Relator LLC, a player made up of Cali legal eagles Anoush Hakimi and Peter Shahriari. This justice-fueled action will line the pockets of Relator LLC with about $507,000, a slice of the settlement pie. The collaborative effort of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Central District of California, and the Small Business Administration’s Offices of General Counsel and Inspector General, are to thank for this reckoning.

Since its inception in May 2021, the COVID-19 Fraud Enforcement Task Force has had its fingers on the pulse of pandemic-related fraud. This settlement serves as a testament to their work and a beep on the radar for potential scofflaws thinking of gaming the system. The case file, for those with a legal palate, is known as United States ex rel. Relator LLC v. West Coast Dental Services Inc., et al., CV 22-3812-MCS (MARx) (C.D. Cal.). And as always, when it comes to allegations settled or otherwise – no formal declaration of liability has been made.

For any good Samaritan with a tip or complaint about possible fraud related to COVID-19 government relief programs, they're urged to reach out through the appropriate channels – with the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline ready to take the call.