Parviz Berjis ran a lucrative medical practice in West Los Angeles and lived in a remodeled Spanish-style home in Brentwood. The Iranian-born physician had been practicing nearly two decades and offered medical and personal advice on Persian-language radio.
Los Angeles County prosecutors say tthat Berjis may have been a respected doctor but that he was also a massive tax cheat. Between 1998 and 2002, they allege, he failed to report $18.7 million in income. He now owes California $2.8 million in back taxes, interest and penalties, they say.
The case against Berjis is the first tangible result of a new strategy against suspected healthcare cheats. Instead of lengthy investigations that take enormous time and resources, prosecutors are seeking relatively simple tax evasion charges. Prosecutors filed the case against Berjis, 72, late last month. They said they plan to file five more cases in the next few months, including charges against two more doctors, two lawyers and a dentist.
"There are a certain number of crooked professionals who are basically stealing all of the money," said Deputy Dist. Atty. Albert H. MacKenzie, who is heading up the new program. "It's staggering."
Prosecutors allege that Berjis billed insurance companies and state and federal agencies for millions of dollars in fraudulent services, then failed to report most of that income. But Berjis' attorney, Harland Braun, said his client maintains that he paid his taxes and that he didn't commit any fraud.
In addition, Braun said, the tax charges are unnecessary because his client already faces workers' compensation and automobile insurance fraud charges. Braun said the state prison sentence Berjis faces if convicted is longer than his life expectancy; he has been diagnosed with cancer.
"To clutter up the courts with these types of cases is a complete waste of time," Braun said. "I think it's all a publicity stunt."
To investigate a tax evasion case, MacKenzie starts with a suspect. Then he sends e-mails to insurance companies and state and federal agencies to determine how much money has been paid. MacKenzie forwards those results to state Franchise Tax Board investigators, who determine whether the suspect underreported the income -- or didn't bother to file tax returns.
The technique is not new; it dates back to the days of gangster Al Capone. But prosecutors say it is rarely used and has the potential to catch big-time swindlers in a simple, straightforward way.
