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Date: 12-16-2021
Case Style:
Case Number: 2:17-cr-00661-DMG
Judge: Dolly M. Gee
Court: United States District Court for the Central District of California (Los Angeles County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney:
Description: Los Angeles, California criminal defense lawyer represented Defendant charged with mail fraud, wire fraud, making false statements, money laundering, and identity theft.
Julian Omidi, 53, of West Hollywood, and an Omidi-controlled Beverly Hills-based company, Surgery Center Management LLC (SCM), were found guilty of 28 counts of wire fraud and three counts of mail fraud. Omidi also was found guilty of two counts of making false statements relating to health care matters, one count of aggravated identity theft and two counts of money laundering. Omidi and SCM were found guilty of one count of conspiracy to commit money laundering.
According to evidence presented at his three-month trial, Omidi, a physician whose license was revoked in 2009, controlled, in part, the GET THIN network of entities, including SCM, that focused on the promotion and performance of Lap-Band weight-loss surgeries. Omidi established procedures requiring prospective Lap-Band patients – even those with insurance plans he knew would never cover Lap-Band surgery – to have at least one sleep study, and employees were incentivized with commissions to make sure the studies occurred.
Omidi used the sleep studies to find a reason – the “co-morbidity” of obstructive sleep apnea – that GET THIN would use to convince the patient’s insurance company to pre-approve the Lap-Band procedure.
After patients underwent sleep studies – irrespective of whether any doctor had ever determined the study was medically necessary – GET THIN employees, acting at Omidi’s direction, often falsified the results. Omidi then used the falsified sleep study results in support of GET THIN’s pre-authorization requests for Lap-Band surgery.
Relying on the false sleep studies – as well as other false information, including patients’ weights – insurance companies authorized payment for some of the proposed Lap-Band surgeries. GET THIN received an estimated $41 million for the Lap-Band procedures.
Even if the insurance company did not authorize the surgery, GET THIN still was able to submit bills for approximately $15,000 for each sleep study, receiving an estimated $27 million in payments for these claims. The insurance payments were deposited into bank accounts associated with the GET THIN entities.
The victim health care benefit programs include Tricare, Anthem Blue Cross, UnitedHealthcare, Aetna, Health Net, Operating Engineers Health and Welfare Trust Fund, and others.
Prosecutors estimate Omidi’s total fraudulent billings at approximately $355 million.
United States District Judge Dolly M. Gee has scheduled an April 6, 2022 sentencing hearing, at which time Omidi will face a statutory maximum sentence of 20 years in federal prison for each of the mail fraud, wire fraud, and money laundering counts, as well as a mandatory consecutive two-year sentence for aggravated identity theft.
In 2014, the government seized more than $110 million in funds and securities from accounts held by individuals and entities involved in the criminal scheme, including Omidi. The government is seeking forfeiture of some or all those funds in the criminal case, and intends to pursue civil forfeiture of some or all of the assets.
The criminal case against corporate defendant Independent Medical Services Inc., another company controlled in part by Omidi, has been severed from this litigation and stayed.
Co-defendant Dr. Mirali Zarrabi, 59, of Beverly Hills, was acquitted of all charges.
The U.S. Food and Drug Administration, Office of Criminal Investigations; the FBI; the Defense Criminal Investigative Service; IRS Criminal Investigation; and the California Department of Insurance investigated this matter.
Assistant United States Attorneys Kristen A. Williams, Ali Moghaddas, David H. Chao of the Major Frauds Section, David C. Lachman of the General Crimes Section, and James E. Dochterman of the Asset Forfeiture Section are prosecuting this case.
18:1341,2: Mail Fraud; Aiding and Abetting and Causing an Act to be Done
(1-16)
18:1341 - MAIL FRAUD; 18:2 - AIDING AND ABETTING AND CAUSING AN ACT TO BE DONE
(1s-28s)
18:1343,2: Wire Fraud; Aiding and Abetting and Causing and Act to be Done
(17-19)
18:1028A(a)(1),2: Aggravated Identity Theft; Aiding and Abetting and Causing an Act to be Done
(20)
18:1035,2: False Statements Relating to Health Care Matters; Aiding and Abetting and Causing an Act to be Done
(21-22)
18:1956(h): Conspiracy to Commit Promotional Money Laundering
(23)
18:1956(a)(1)(A)(i),2: Promotional Money Laundering; Aiding and Abetting and Causing an Act to be Done
(24-25)
18:1343 - WIRE FRAUD; 18:2 - AIDING AND ABETTING AND CAUSING AN ACT TO BE DONE
(29s-31s)
18:1028A(a)(1) - AGGRAVATED IDENTITY THEFT; 18:2 - AIDING AND ABETTING AND CAUSING AN ACT TO BE DONE
(32s)
18:1035 - FALSE STATEMENTS RELATING TO HEALTH CARE MATTERS; 18:2 - AIDING AND ABETTING AND CAUSING AN ACT TO BE DONE
(33s-34s)
18:1956(h): CONSPIRACY TO COMMIT PROMOTIONAL MONEY LAUNDERING
(35s)
18:1956(a)(1)(A)(I) - PROMOTIONAL MONEY LAUNDERING; 18:2 - AIDING AND ABETTING AND CAUSING AN ACT TO BE DONE
(36s-37s)
Outcome: 12/16/2021 1559 TRIAL BRIEF filed by Plaintiff USA as to Defendant Julian Omidi, Independent Medical Services, Inc., Surgery Center Management, LLC, Mirali Zarrabi (Dochterman, James) (Entered: 12/16/2021)
12/16/2021 1561 MINUTES OF Jury Trial - 51st Day held before Judge Dolly M. Gee as to Defendants Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. Jury Verdict: See separate verdict form. Julian Omidi (1) Guilty on Count 1s-28s,29s-31s,32s,33s-34s,35s,36s-37s and Surgery Center Management, LLC (3) Guilty on Count 1s-28s,29s-31s,35s; Mirali Zarrabi (4) Not Guilty on Count 1-28,29-31,33-34. Jury polled. Filed Witness & Exhibit lists. Filed Jury notes. Filed Jury Instructions. Filed Jury Verdict. Bond exonerated as to Defendant (3) Mirali Zarrabi, M.D. The Court receives jury note no. 6 and meets and confers with counsel. See separate verdict form. After hearing argument, the Court DENIES the Government's request to remand Defendant Omidi into custody. Pursuant to Defendant Omidi's unopposed request, post-trial motions are due by 1/31/2022. The Court refers Defendants Julian Omidi and Surgery Center Management, LLC to Probation Office for Investigation and Report. Sentencing set for 4/6/2021 03:00 PM before Judge Dolly M. Gee. The Government's Sentencing Position is due at least two weeks prior to the sentencing date. Defendant's Sentencing Position is due at least one week before the sentencing date. If there are no position papers, the parties are directed to file a notice of non-opposition. Late filing of position papers, other than letters of support, may cause a postponement of the sentencing hearing. Court Reporter: Chia Mei Jui. (gk) (Entered: 12/17/2021)
12/16/2021 1562 Preliminary Instructions (Given) by Judge Dolly M. Gee as to Defendants Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1563 Jury Instructions (Given) by Judge Dolly M. Gee as to Defendants Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (Final) (gk) (Entered: 12/17/2021)
12/16/2021 1564 LIST OF EXHIBITS AND WITNESSES at trial as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1565 REDACTED Jury Note Number 1 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1566 SEALED - UNREDACTED Jury Note Number 1 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Jury Note 1565 . (gk) (Entered: 12/17/2021)
12/16/2021 1567 REDACTED Jury Note Number 2 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1568 SEALED - UNREDACTED Jury Note Number 2 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Jury Note 1567 . (gk) (Entered: 12/17/2021)
12/16/2021 1569 REDACTED Jury Note Number 3 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1570 SEALED - UNREDACTED Jury Note Number 3 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Jury Note 1569 . (gk) (Entered: 12/17/2021)
12/16/2021 1571 REDACTED Jury Note Number 4 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1572 SEALED - UNREDACTED Jury Note Number 4 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Jury Note 1571 . (gk) (Entered: 12/17/2021)
12/16/2021 1573 REDACTED Jury Note Number 5 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1574 SEALED - UNREDACTED Jury Note Number 5 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Jury Note 1573 . (gk) (Entered: 12/17/2021)
12/16/2021 1575 REDACTED Jury Note Number 6 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1576 SEALED - UNREDACTED Jury Note Number 6 as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Jury Note 1575 . (gk) (Entered: 12/17/2021)
12/16/2021 1577 VERDICT FORM as to Defendants Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi (Blank). (gk) (Entered: 12/17/2021)
12/16/2021 1578 REDACTED VERDICT FORM as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. (gk) (Entered: 12/17/2021)
12/16/2021 1579 SEALED - UNREDACTED VERDICT FORM as to Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi re: Redacted Verdict Form 1578 . (gk) (Entered: 12/17/2021)
12/16/2021 1580 RECEIPT FOR RELEASE OF EXHIBITS to Counsel Upon Verdict/Judgment at Trial; as to Defendants Julian Omidi, Surgery Center Management, LLC, Mirali Zarrabi. Pursuant to stipulation of counsel and/or by Order of the Court, all exhibits listed on the parties' exhibits list are returned to counsel for respective party(ies). (gk) (Entered: 12/17/2021)
Plaintiff's Experts:
Defendant's Experts:
Comments: