'Godfather' Sentenced To More Than 54 Years For OC, RivCo Shams

RIVERSIDE COUNTY, CA — A former chiropractor from Riverside County who called himself "The Godfather" was sentenced to more than 54 years in state prison and ordered to pay over $23 million in fines for conning his patients and California's workers' compensation system.

During Friday's sentencing hearing, Riverside Superior Court Judge Charles Koosed said Peyman Heidary, 53, of Riverside broke laws due to his "greed." A Riverside County jury convicted Heidary in January on 68 counts of insurance fraud, conspiracy, money laundering and various other charges stemming from an investigation into his illegal activities between 2009 and 2014 in Orange and Riverside counties.

According to the Riverside County District Attorney’s Office and the California Department of Insurance, Heidary controlled several sham law firms and a network of bogus health clinics until his 2014 arrest. He used the "businesses" to recruit thousands of legitimately injured patients, referring them to his clinics to create unnecessary billing, according to the DA.

Heidary exaggerated patient injuries and ordered his employees to provide unnecessary treatments, which resulted in inflated insurance billings, the DA said.

A 2014 report from The Orange County Register found Heidary was listed as president of California Health Care Management in Corona, Anaheim and La Habra; The Best of California Promotions and Management in Corona, Fullerton and Orange; Heidary Chiropractic in Corona, Fullerton and Anaheim; Doctor’s Reports Inc. in Fullerton and La Habra; California Injury Lawyers in Corona; and California Lawyers Network in Industry. The paper also found Heidary was a past managing member of Riverside Health Clinic, Corona Health Clinic and Santa Ana Health Clinic.

The criminal complaint filed July 25, 2014, in Riverside Superior Court listed Heidary’s aliases as Brian Heidary, The Godfather and Number One, according to the Register.

Heidary was a crime boss, according to the narrative from the Riverside County DA's Office. On Monday, it said one of its witnesses, Denise Rivera, slipped and fell while working as a certified nurse assistant for special needs children. She testified that she was recruited into Heidary’s scheme, but never received any effective treatment.

"[Heidary’s employees] released me," Rivera told jurors. "They told me ... basically I was okay. My knee was okay."

When asked during the trial if her knee actually was OK, she responded, "No."

Although originally charged with $98 million in fraud, the evidence presented at trial, including Heidary’s testimony, revealed the actual damage was about $150 million, according to the prosecution.

"Defendant is neither a medical doctor nor an attorney," according to court documents obtained by the Register. Heidary's "main purpose is to milk money out of Workers’ Compensation Insurance Companies."

During Friday's sentencing, Judge Koosed said Heidary had a deep knowledge of California's workers’ compensation system.

"[He] took advantage of that knowledge based on greed," the judge said.

Riverside County District Attorney Mike Hestrin called Heidary a "sophisticated criminal " who took advantage of unsuspecting victims.

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