July 19, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

West Coast Dental Pays $6.3 Million to Settle PPP Loan Fraud Allegations

Brentwood Company and Founders Settle False Claims Act Allegations

West Coast Dental Administrative Services LLC, a Brentwood-based company, along with its founders and former owners, Drs. Soleyman Cohen-Sedgh, Farid Pakravan, and Farhad Manavi have agreed to pay $6.3 million to resolve allegations of violating the False Claims Act. The allegations involve receiving improper loans under the Paycheck Protection Program (PPP) for West Coast Dental Services Inc. and its affiliated offices.

City Real Estate Holdings Inc., a Beverly Hills-based real estate investment company owned by Dr. Manavi, also paid $35,149.82 to settle potential liability under the False Claims Act related to a separate PPP loan.

“Companies such as these that depleted crucial pandemic-assistance funding will be held accountable,” said United States Attorney Martin Estrada. “This resolution shows our office’s commitment to ensuring companies act with the utmost integrity.”

The PPP, established in March 2020 under the CARES Act and administered by the Small Business Administration, was designed to support small businesses during the COVID-19 pandemic. The United States alleged that West Coast Dental and six affiliates improperly received seven second-draw PPP loans, claiming eligibility despite employing more than 300 individuals collectively. The company and its affiliates also allegedly failed to disclose common ownership in loan applications. Additionally, City Real Estate Holdings Inc. was ineligible for a PPP loan due to its status as a passive investment business.

“PPP loans were intended to support small businesses facing difficult economic times due to the COVID-19 pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “The Justice Department will continue to hold borrowers who improperly received and sought forgiveness of PPP loans accountable.”

The settlement resolves claims under the qui tam or whistleblower provisions of the False Claims Act, brought by Relator LLC, formed by California attorneys Anoush Hakimi and Peter Shahriari. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. Relator LLC will receive approximately $507,000 from the settlement.

The resolution was a coordinated effort between the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Central District of California, and the Small Business Administration’s Office of General Counsel and Inspector General.

Assistant United States Attorney Jack D. Ross and Justice Department Trial Attorney Allie Pang handled the case, with investigative assistance from Special Agent Samuel Huynh of the SBA-OIG. The Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021, to enhance efforts to combat and prevent pandemic-related fraud.

Anyone with information on potential fraud involving COVID-19 relief programs can report it by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or visiting the NCDF Web Complaint Form.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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