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‘Godfather’ gets decades in prison for $150M fraud scheme

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A former chiropractor was sentenced to decades in prison after he was convicted on dozens of charges related to a $150 million workers compensation fraud scheme.

Peyman Heidary, 53, was convicted in January on 68 counts of insurance fraud, conspiracy, money laundering, and various other charges, for which he was sentenced to more than 54 years in state prison, the Riverside County District Attorney’s Office said in a news release.

Between 2009 and 2014, Heidary operated what prosecutors described as “several sham law firms and a network of sham health clinics” to drive patients to his medical practices, where he then “exaggerated patient injuries and ordered his employees to provide unnecessary treatments, resulting in inflated billings to insurance companies.”

“Heidary used the sham law firm to recruit thousands of legitimately injured patients, referring them to his network of clinics to create unnecessary billing,” the release added.

Court records reported by The Press-Enterprise indicate Heidary operated businesses in Riverside, Los Angeles and Orange counties and referred to himself as “the Godfather,” though his attorney said that name was a joke.

“The California workers’ compensation system is designed to help injured workers get back on their feet without ruining them financially,” District Attorney Mike Hestrin said in the release. “Sophisticated criminals like Mr. Heidary don’t just steal money, they take advantage of innocent patients. The sentence handed down today sends a strong message that these types of offenses will not be tolerated in Riverside County.”