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On December 19, 1997, at Ahmed’s request and on Ahmed’s
behalf, Saghir prepared and filed articles of incorporation for a
corporation to be named Madina, Inc. (Madina), to which the
pharmacies nominally were to be transferred. Darwish was
identified as the sole shareholder of Madina. Ahmed then caused
Saghir to prepare a series of documents reflecting, among other
things, a purported transfer of ownership of the pharmacies from
Ahmed to Darwish for a total stated purchase price of $170,000,
to be reflected by a purported $20,000 cash downpayment from
Darwish to Ahmed and by a purported $150,000 promissory note from
Darwish to Ahmed.
Notwithstanding the contents of the above documents and the
purported sale of the pharmacies, Ahmed was the sole owner of the
stock of Madina, and Ahmed retained actual control of the
pharmacies.
Sometime in 1997, Ahmed used funds from K & M to open a
medical laboratory using the name Apex Medical Lab. The lab was
located near Ahmed’s pharmacies and clinics and derived most of
its business from customers and patients of Ahmed’s pharmacies
and clinics.
To avoid scrutiny by California State health care officials,
who were already investigating the other businesses Ahmed
controlled, Ahmed arranged for nominal ownership of the lab to be
put into Darwish’s name.
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