K & M La Botica Pharmacy, Incorporated, et al. - Page 9

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          pharmacies, and the clinic billed Medi-Cal for medical services             
          provided to low-income individuals.                                         
               California law prohibits individuals from owning or                    
          operating a medical clinic unless they are medical doctors and              
          are licensed to practice medicine in California.5                           
               As indicated, Ahmed did not have a medical license.  To                
          circumvent the above restriction on ownership of his medical                
          clinic, Ahmed represented to the Medical Board of California                
          (Medical Board) that his clinic was owned by a partnership                  
          between one Wael Elkholy (Elkholy) and Ahmed’s wife, both of whom           
          were medical doctors.  Elkholy, who apparently resided in                   
          Connecticut, did not know of his purported ownership interest in            
          the clinic, and he did not authorize Ahmed to represent to the              
          Medical Board that he had an ownership interest in the clinic.              
          The record herein is unclear as to whether Ahmed’s wife knew that           
          Ahmed had used her name in connection with the clinic or if she             
          had authorized Ahmed to do so.                                              
               In the early 1990s, Ahmed had met Elkholy in New York City,            
          while each, respectively, was studying for the pharmacy and for             


               5  See Cal. Bus. & Prof. Code secs. 2415, 2285 (West 2003 &            
          Supp. 2005); Steinsmith v. Med. Bd., 85 Cal. App. 4th 458 (2000).           
          In addition, Cal. law requires shareholders, officers, and                  
          directors of medical clinics to be licensed physicians.  Cal. Bus           
          & Prof. Code sec. 2408 (West 2003 & Supp. 2005); Cal. Corp. Code            
          sec. 13401 (West 1987 & Supp. 2005).                                        







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