The DOJ announced that West Coast Dental Administrative Services LLC and its owners/founders, Drs. Soleyman Cohen-Sedgh, Farid Pakravan, and Farhad Manavi (West Coast Dental), have paid $6.3 million to resolve allegations of violating the False Claims Act (FCA) by submitting false certifications when applying for seven Paycheck Protection Program (PPP) loans. Dr. Manavi’s real estate company, City Real Estate Holdings Inc., also paid $35,149.82 to resolve potential FCA allegations related to another PPP loan.
West Coast Dental operates a network of dental offices in Southern California. According to the settlement agreement, West Coast Dental applied for and received a PPP loan in the amount of $7,343,627.50 in April 2020. The Small Business Administration (SBA) administered PPP loans to support small business during the COVID-19 pandemic. In February and March of 2021, West Coast Dental and its owners/founders applied for and received seven additional PPP loans ranging from $148,481 to $1,995,000. City Real Estate also applied for and received a PPP loan for $20,833.32. The foregoing eight loans were subsequently forgiven by the SBA. According to the government, after West Coast Dental received a first draw loan in April 2020, it was ineligible for second draw PPP loans because they employed more than 300 employees. The government alleged that West Coast Dental submitted false statements to receive the additional loans between February and March of 2021.
West Coast Dental will now pay $6,335,149.82, of which $4,212,383.60 is restitution. This matter was initially filed pursuant to the qui tam provisions of the FCA by Relator LLC, a limited liability corporation formed by California attorneys Anoush Hakimi and Peter Shahriari. The government will pay Relator LLC more than $500,000 and West Coast Dental will pay Relator LLC $10,000 for attorneys’ fees.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today.