West Coast Dental Administrative Services and its founders and former owners recently paid $6.3 million to resolve allegations that it violated the False Claims Act.
West Coast Dental and six of its affiliated offices allegedly received seven improper second draw loans under the Paycheck Protection Program and subsequent forgiveness of these loans based on false certifications that the companies qualified for the loans.
West Coast Dental and its affiliates also allegedly failed to disclose common ownership of the dental offices in their separate PPP loan applications, according to an Aug. 9 news release from the Department of Justice.
The U.S. also alleged that City Real Estate Holdings, a real estate investment company owned by one of the DSO's founders, received a PPP loan that it was also ineligible for. The real estate investment company also received forgiveness of its total loan amount, according to the news release.
Those who paid the $6.3 million settlement include West Coast Dental and its founders, Farid Pakravan, DDS, Soleyman Cohen-Sedgh, DDS, and Farhad Manavi, DDS. City Real Estate Holdings paid an additional $35,149.82 to resolve its allegations.
West Coast Dental Administrative Services operates more than 40 locations in Southern California.