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1997
In 1997, Ahmed opened another closed-door pharmacy under the
K & M name and three additional medical clinics under the CSM
name, each in the same neighborhood as the other pharmacies and
clinic. One of the clinics functioned as an educational clinic
and did not treat patients in the traditional sense. Rather, in
this clinic, classes relating to family planning and to the
prevention of sexually transmitted diseases were held for
residents of the community, for which classes the clinic received
payment from the State of California.
Title to the building in which one of Ahmed’s pharmacies and
one of his medical clinics were located was in the name of K & M.
On approximately April 28, 1997, Ahmed forged Elkholy’s
signature on an amendment to the CSM articles of incorporation to
change the CSM corporate name to Clinica Kholy Medical Group,
Inc. (CK). The stated reason for this name change was that
another medical clinic in California already operated under the
name of Clinica Santa Maria.
In October of 1997, while Elkholy was on a trip to
California, Ahmed offered to sell to Elkholy for $600,000 a 50-
percent interest in the medical clinics being operated under the
CK name, 100 percent of the stock of which, as indicated, was
already in Elkholy’s name. At that time, Elkholy did not know
that he was identified in California State records as the nominal
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