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“Disabled” Berkeley Psychologist Convicted of $1 Million Income Tax Fraud

Hugh Leslie Baras, was sentenced to thirty months in prison today, and ordered to pay restitution of $593,513 to the Internal Revenue Service and the Social Security Administration for tax evasion and theft of government property, United States Attorney Melinda Haag, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez announced.

On Feb. 3, 2014, Baras, 70, a Berkeley psychologist, was convicted by a jury of five counts of tax evasion, in violation of Title 26, U.S.C. § 7201, and one count of theft of government property, in violation of Title 18, U.S.C. § 641. The evidence presented during the seven-day trial, showed that Baras, who formerly worked as a psychologist at Kaiser Permanente, and as an Adjunct Clinical Assistant Professor in the Department of Psychiatry and Behavioral Sciences at Stanford University School of Medicine, started a solo, private practice in Palo Alto, Calif., in late 2002. At his private practice, Baras provided clinical psychotherapy services to clients. During the years 2005 through 2009, Baras’s private practice generated over $1,000,000 of income. Although he filed timely federal income tax returns for each of these years, Baras omitted all of the income produced by his private practice from those returns.

In addition, although he was self-employed and earning substantial income, Baras continued to collect Disability Insurance Benefits from the Social Security Administration. Between 2006 and 2009, Baras received Disability Insurance Benefits payments to which he was not entitled totaling $80,615. Also during this period, Baras sold nearly $600,000 worth of gold and silver coins to a coin-broker in Oakland. These sales created capital gains which Baras also failed to report on his tax returns.

The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, in Oakland. Judge Gonzalez Rogers also sentenced Baras to a three-year period of supervised release, ordered him to forfeit $80,615, and to pay a fine of $7,500. Baras was ordered to self-surrender for service of his sentence on Sept. 29, 2014.

WCJ Jane Madsen Moves to Eureka Office

The Division of Workers’ Compensation announced that Judge Jane Madsen will permanently transfer to the Eureka office effective August 1. Judge Madsen has been presiding over the calendar since former Presiding Judge Robert W. Kutz retired in 2013.

Judge Madsen will transfer from her former post as a judge in the Redding district office, where she has been since 2007. She joined DWC in 2005 as a workers’ compensation judge in the Long Beach office.

With only a single workers’ compensation judge, the Eureka office will become a satellite under the supervision of Santa Rosa Presiding Judge James Johnson. The transition will have no effect on access to the office by practitioners and injured workers in the Eureka area. Information and Assistance and Disability Evaluation services will be provided through coordination with the Santa Rosa and Redding offices, as they have been for some time.

The Eureka office will remain at its current location at 100 H Street, Room 202, although a move is possible in the future.

Activity Level May Predict Orthopaedic Outcomes

According to a literature review in the July issue of the Journal of the American Academy of Orthopaedic Surgeons (JAAOS), patients’ activity level is a strong predictor for how well they will do with certain treatments and how well they recover from injuries after treatment. Patients are encouraged to ask their orthopaedic surgeon if activity level is an important factor in their treatment decision. For example, more active patients are at a higher risk of re-injury after an anterior cruciate ligament (ACL) reconstruction, and activity level should be considered when deciding which graft to use in the ACL repair.

Easily administered, standardized scales for the shoulder, hip, knee and ankle are commonly used in orthopaedics to quantify a patient’s activity level. But, the measures of how often, rather than how well, a task is performed do not account for symptoms, functional disabilities, age, weight, overall health and other factors which also may impact prognostic and outcome variables.

“In orthopaedics, we want to restore function to take away pain and to help patients return to activity,” said orthopaedic surgeon and lead study author Robert H. Brophy, MD. “We’re still learning about how to best use, quantify and measure activity levels to optimize prognostics and outcomes.”

Shoulder: The strongest predictors for failure in rotator cuff tears were patient expectations on the efficacy of physical therapy and baseline activity level. After a rotator cuff tear, patients who were active were less likely to respond to nonsurgical treatment.

Hip: Preoperative activity levels, age, male gender and lower body mass index (BMI) were predictors of higher activity level at one and five years following total hip replacement surgery.Physical activity — including occupational lifting and standing — may accelerate the development and increased risk of osteoarthritis (OA).

Knee: Higher baseline activity, lower baseline BMI and higher level of athletic competition were associated with higher activity levels two years after ACL reconstruction.Female gender, smoking in the 6-month period before surgery, and revision ACL reconstruction were associated with lower activity level. Following ACL reconstruction, patients were significantly less satisfied if they had a lower post-surgical activity level. Increased incidents of knee injury and trauma in the athletic population, rather than participation in physical activity, may cause an increased risk of knee OA.

“There’s not just one activity level variable” in these measurements, said Dr. Brophy. “It depends on the population, the injury you’re studying, etc. We’re making progress, and the progress varies depending on what you’re looking at.”

Professional and Collegiate Athletic Concussion Cases Report Settlements

Early this month, a federal judge granted preliminary approval to a landmark deal that would compensate thousands of former NFL players for concussion-related claims. The ruling by U.S. District Judge Anita Brody in Philadelphia came about two weeks after the NFL agreed to remove a $675 million cap on damages. Brody had previously questioned whether that would be enough money to pay all claims. More than 4,500 former players have filed suit, some accusing the league of fraud for its handling of concussions.

The settlement is designed to last at least 65 years and cover retirees who develop Lou Gehrig’s disease and other neurological problems. The original settlement included $675 million for compensatory claims for players with neurological symptoms, $75 million for baseline testing and $10 million for medical research and education. The NFL would also pay an additional $112 million to the players’ lawyers, for a total payout of more than $870 million. The revised settlement eliminates the cap on overall damage claims but retains a payout formula for individual retirees that considers their age and illness. A young retiree with amyotrophic lateral sclerosis, or Lou Gehrig’s disease, would receive $5 million, a 50-year-old with Alzheimer’s disease would get $1.6 million and an 80-year-old with early dementia would get $25,000.

It is not immediately clear how pending or future workers’ compensation claims will or will not integrate the proceeds of these settlements, or be allowed offsets to claimed compensation benefits.

Meanwhile Reuters reports that the NCAA has agreed to settle a head injury lawsuit by providing $70 million for concussion testing and diagnosis of student athletes in a move to change the way colleges address sports safety, according to court documents filed on Tuesday. The class-action agreement, if approved by a federal judge and class members, would apply to student athletes in all sports who played at schools regulated by the National Collegiate Athletic Association (NCAA) at any time in the past and up to 50 years into the future.

While the money in the NFL settlement was intended to resolve all of the personal injury claims for the plaintiffs’ out of pocket damages, Tuesday’s proposed NCAA settlement was designed to pay only for research and a medical monitoring program.

Attorneys involved in the case said that “If the settlement is approved, overnight it’s going to change the way sports are played.” The NCAA settlement addresses a number of guidelines, including that a student with a concussion will not be allowed to return to play or practice on the same day and must be cleared by a doctor. Also, medical personnel must be present for all games and available for practices. The settlement also establishes a process for schools to report concussions.

The NCAA lawsuit was first filed in 2011 on behalf of former Eastern Illinois football player Adrian Arrington, who said he suffers from headaches and seizures as a result of five documented concussions. The proposed settlement covers other cases. Not all plaintiffs’ attorneys were happy with the proposed settlement. Attorney Jay Edelson told U.S. District Judge John Lee at Tuesday’s hearing in Chicago that it benefited the NCAA, rather than injured players. Edelson said players already received medical testing and the settlement would not help them financially to recover from injuries. U.S. District Judge John Lee set the next hearing on the case for Sept. 19, at which time he may decide on whether to grant a preliminary approval for the settlement. More than 450,000 NCAA student athletes compete in 23 sports. The NCAA makes about $740 million revenue each year, according to court documents.

As the NFL approaches its exit strategy on the concussion cases, it is becoming deeply involved in the new claims filed in San Francisco this year by former players seeking damages for what they allege to be the illegal distribution of painkillers. Former NFL wide receiver J.D. Hill, former Chicago Bears quarterback Jim McMahon and six other former NFL players claim the league illegally gave them narcotics and other painkillers that led to addiction and long-term medical complications in a class-action lawsuit filed this May in San Francisco federal court.

House Passes Wasserman Schultz Longshore Clarification Act

The Longshore Harbor Workers’ Compensation Clarification Act, introduced by Rep. Debbie Wasserman Schultz and passed by the U.S. House of Representatives this week, attempts to reinstate congressional intent to ensure that workers in the recreational marine repair industry have adequate workers’ compensation coverage. This legislation provides a more clear definition of a recreational vessel which allows small businesses in the marine repair industry to forgo duplicative insurance policies while ensuring these small businesses, 95% of which have fewer than 10 employees, can adequately protect their employees without incurring exorbitant costs.

In 2009, Congress passed Section 803 of the American Recovery and Reinvestment Act, which expanded an existing exception that allowed more recreational marine repair workers to receive workers’ compensation coverage under state law rather than under the Longshore Harbor Workers Compensation Act. This was necessary because repair workers were simply not buying the more expensive longshore policies and were thus left uncovered. Unfortunately, new regulations were issued in 2011 that adopted a definition of a recreational vessel that was far more complicated and onerous than the existing law. In doing so, this new regulatory definition ran counter to what Congress intended.

The Longshore Harbor Workers’ Compensation Clarification Act establishes a workable definition for a recreational vessel. It restores the intent of Congress in the original 2009 enactment to get coverage for these workers under less expensive state workers compensation insurance policies.

“Put simply, this bill is about protecting jobs while keeping workers covered. With 300 plus miles of inland waterways and 50,000 registered yachts, Ft. Lauderdale is the yachting capital of the world,” said Rep. Wasserman Schultz. “In Broward County alone, there are over 90,000 jobs in the recreational marine industry. These jobs allow workers to buy homes, provide for their families and contribute significantly to local economies. In 1984 and in 2009 Congress intended to make sure these workers and families were covered. This bill keeps that promise.”

Riverside Attorney and Chiropractor Face $50 Million Comp Fraud Charges

A year long investigation by authorities into the activities of the California Injury Lawyers Inc. has lead to the arrest of an attorney, chiropractor and other operatives in Riverside County.

Peyman Heidary is one of the named defendants in the 8 page criminal complaint containing a total of 25 counts. Heidary at one time held California chiropractors license 25035 which is now reported to be inactive. The license was first issued in 1997. The Board records also reflect a forfeited license for Heidary Chiropractic Inc. Web searches reflect a chiropractic office at one time located at 1450 W 6th Street in Corona, and another at 15030 Imperial # A, in La Mirada. Corporate information also suggests that Peyman Heidary’s additional active roles include:president of California Healthcare Management Franchise, Inc. and president of The Best of California Promotions and Management, Inc. as well as past president of Doctor’s Reports, Inc. and past managing member of Bellflower Health Clinic, LLC. Riverside Health Clinic, LLC., Corona Health Clinic, LLC. and Santa Ana Health Clinic, LLC. The criminal complaint also alleges that Heidary was also known as Brian Heidary and “The Godfather.” It is believed that Heidary was involved in a total of nine medical clinics in the Southern California area.

The criminal case also involves attorney Cary David Abramowitz. State Bar records reflect that he was issued State Bar number 159906 in October 1992. This license is still active. The Bar reports that he is affiliated with California Injury Lawyer Inc. in Corona. A web search shows the office to be located at 495 E Rincon St #207, Corona,

A declaration in the case signed under penalty of perjury by William G. Hanley, Senior Investigator, Bureau of Investigation, Riverside Count District Attorney’s Office alleges that “Heidary was arrested on July 23, 2014 at 1700 hrs. for a bailable felony offense, to wit: a violation of Insurance Code section 11880 (four counts) with Penal Code section 12022.6 (A)(4) and Penal Code section 186.l l(a)(2) allegations, Defrauding State Compensation Insurance Fund with an excessive taking of more than 1.3 million dollars and the White Collar crime enhancement with a taking of more than $500,000.00. Additional Charges are Insurance Code section 11760 Defrauding an Insurance Company, Penal Code section l 82(a)(2) Conspiracy and Business and Professions Code section 2052(a).” The declaration goes on to state that Heidary was “acting as the head of a criminal organization consisting of illegally established medical clinics and a law firm whose main purpose is to milk money out of Workers’ Compensation Insurance Companies. Between 2008 and today this organization has processed thousands of workers’ compensation claims consisting of non-existent injuries. These cases were prepared and filed at defendant’s direction. The loss to the insurance companies could well exceed 50 million dollars, with a known loss to SCIF of 5 million at the time of the arrest. Aside from having access to large amounts of money in 26 identified Wells Fargo Bank Accounts we also believe that defendant has access to money in overseas bank accounts. Defendant is an Iranian nation (sic) I believe that should he be released on the scheduled bail amount there is a strong likelihood he will flee the State’s jurisdiction.” As a result of this declaration, a Superior Court Judge set bail at $5 million.

A list of the entities allegedly defrauded by this enterprise is extensive. The Complaint lists Amtrust North America, Western States, Zenith Insurance, American Alternative Insurance, California Contractors Network, California Restaurant Mutual, Everest National Insurance Company, Lincoln General Insurance Company, Manufacturers Alliance Insurance Company, Pennsylvania’s Manufacturers Associated Insurance Company, Pennsylvania Manufacturers Indemnity Company, Tower Insurance Company, Zurich American Insurance Group, Crum and Foster Insurance Company, ACE USA Insurance (TPA ISIS), AIG and CNA Insurance, No doubt there are others yet to be identified.

Jail records reflect that Heidary was arrested last Wednesday and remains in custody at Robert Presley Detention Center with his court appearance set for July 29.

Entities currently under investigation include Heidary Chiropractic Inc, The Best of California Business Promotions and Mgmt, Bellflower Health Clinic, LLC, Santa Ana Health Clinic, LLC, Corona Health Clinic, LLC, Ontario Health Clinic, LLC, Riverside Health Clinic, LLC, Anaheim Health Clinic LLC, and Montebello Health Clinic, LLC. Special Investigation Units with relevant information about this entities may contact M. J. Mayman, Deputy District Attorney, Riverside County District Attorney’s Office, Special Prosecutions Section-White Collar Crime, 3960 Orange Street, Suite 1015 in Riverside, California 92501, Telephone No.: 951-955-5400. Cell: No.: 951-427-7277

DWC Posts Ambulance Fee Schedule Update

The Division of Workers’ Compensation has adopted an order adjusting the ambulance services section of the official medical fee schedule (OMFS) to conform to changes in the Medicare payment system as required by Labor Code section 5307.1. The effective date of the changes is August 1, 2014, for ambulance services paid for under the California workers’ compensation OMFS.

The adjustment incorporates the 2014 ambulance inflation factor which has been announced by the Centers for Medicare and Medicaid Services (CMS). The ambulance inflation factor for calendar year 2014 is 1.00 percent.

Feds Say Senator Yee Involved in Bribes for NFL Comp Law

A federal indictment released Friday expanded criminal charges against state Sen. Leland Yee to include racketeering, alleging Yee attempted to extort campaign contributions from an NFL team owner in exchange for a favorable vote on pending workers’ compensation law.  Yee, a San Francisco lawmaker, was arrested in March and charged with accepting $62,000 in campaign contributions in return for favors, and offering to arrange the sale of machine guns and shoulder-fired missiles to an undercover FBI agent posing as a mob figure.

The Los Angeles Times reports that a superseding grand jury indictment was issued, adding a violation of the Racketeer Influenced and Corrupt Organizations, or RICO, Act, which allows enhanced criminal penalties and civil action when crimes are performed as part of a criminal organization. In the new indictment, Yee faces three additional charges: one count of “conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity,” and two counts of conspiracy “to obtain property under the color of official right.” Yee has pleaded not guilty to the original counts and remains in office on paid suspension. He will have to enter a plea on the new charges.

The new, 148-page indictment includes charges against the same 29 people charged earlier, including Yee’s political consultant, Keith Jackson, and Chinatown figure Raymond “Shrimp Boy” Chow. Jackson, a former president of the San Francisco Board of Education, also was newly charged with racketeering. A racketeering conviction carries a possible prison sentence of 20 years or more and huge fines, said “Laurie Levenson, a professor at Loyola Law School and a former federal prosector.”RICO allows the prosecution to tie together different types of illegal activities and conspiracies. Thus, it is a more expansive charge,” Levenson said. “From a public relations point of view, being charged with ‘racketeering’ certainly sounds worse and connotes the activities of organized crime.

The alleged racketeering enterprise involving Yee and Jackson, according to the indictment, included “Extorting individuals and professional sports teams related to the passage of legislation governing the ability of professional athletes to collect workers compensation for injuries in California.” In 2013, Yee allegedly told an undercover FBI agent posing as an Arizona businessman that he should contact an NFL team owner the agent claimed to know and the owner “should contact Yee with an offer to help Yee,” because he would be a key vote on the workers compensation bill, the indictment says. The undercover agent allegedly asked Yee how much his vote would cost and Yee allegedly said, “Oh no … we gotta drag it out, man. We gotta juice this thing,” the indictment says. The indictment refers to a purported owner but does not provide any evidence that an actual NFL owner was involved. The undercover agent offered Yee $60,000 for his vote, the indictment says, but Yee, after voting for the bill in committee, did not receive a campaign contribution. Yee abstained when the full Senate approved the bill.

The indictment also accuses Yee and Jackson of “extorting individuals related to the California State Athletic Commission and the Mixed Martial Arts industry regarding retaining the existence of CSAC and its ability to regulate certain sports in California.” Yee allegedly told an unidentified individual who wanted the commission to keep operating, which allowed it to continue permitting mixed martial arts fights, that he should hire Jackson as his lobbyist to win approval of a bill that extended the commission’s operations. Yee told the individual he was thinking of voting against the bill but ended up voting for the measure.

Curtis Briggs, an attorney for Chow, called the new indictment “completely underwhelming” because it did not charge any new defendants and did not expand on the allegations against his client, including money laundering, which he denies.

Jackson’s attorney declined to comment, through a representative. An attorney for Yee did not respond to requests for comment on the new indictment, which describes additional accusations of actions by Yee offered in exchange for campaign contributions.

Proposed DWC Rule To Delay ICD-10 Implementation

The Division of Workers’ Compensation has posted proposed changes to a regulation and to the Medical Billing and Payment Guide to postpone the current ICD-10 compliance date of October 1, 2014 for one year, to October 1, 2015.

The International Classification of Diseases – 10th Revision, Clinical Modification (ICD-10-CM) and the International Classification of Diseases – 10th Revision, Procedure Coding System (ICD-10-PCS) were adopted in February 2014 with an implementation date to coincide with the Health Insurance Portability and Accountability Act (HIPAA) implementation date.

Congressional action earlier this year postponed the October 1, 2014 compliance date for entities covered by HIPAA. The Center for Medicare and Medicaid Services has issued a public notice indicating that the United States Department of Health and Human Services expects to release an interim final rule in the near future that will provide a new compliance date that will require use of the ICD-10 beginning October 1, 2015 for HIPAA-covered entities. For workers’ compensation, the Administrative Director proposes to amend the DWC Medical Billing and Payment Guide to align the workers’ compensation ICD-10 transition date with the October 1, 2015 ICD-10 transition date applicable to HIPAA-covered entities and the broader health care sector.

The Administrative Director is accepting written comments until 5 p.m. on Monday, September 8, 2014. No public hearing has been scheduled; all comments may be submitted in writing by the close of the comment period. The notice and text of the regulations can be found on the proposed regulations page.

Tylenol No Better Than Placebo For Low Back Pain

About two-thirds of adults have lower back pain at some point in their lives, and most are told to take acetaminophen, sold under brand names like Tylenol, Anacin and Panadol. Medical guidelines around the world recommend acetaminophen as a first-line treatment. But there has never been much research to support the recommendation, and now a large, rigorous a double-blind, randomized controlled trial published in the Lancet has found that acetaminophen (also known as paracetamol) works no better than a placebo.

The Lancet is a weekly peer-reviewed general medical journal. It is one of the world’s oldest and best known general medical journals, and has been described as one of the most prestigious medical journals in the world.[2] The Lancet was founded in 1823 by Thomas Wakley, an English surgeon The Lancet’s impact factor was ranked second among general medical journals after The New England Journal of Medicine

“Our result illustrates the problems in relying on that indirect evidence when setting guidelines,” said Christopher M. Williams, a researcher at the George Institute for Global Health in Sydney and lead author of the new study, published Wednesday in The Lancet.

Dr. Williams and his colleagues randomly assigned 1,643 people with acute low back pain to one of three groups. The first was given two boxes: one “regular” box containing 500-milligram acetaminophen tablets, and a second “as-needed” box also containing acetaminophen. The second group received a regular box of acetaminophen and an as-needed box containing a placebo. The third group received two boxes of placebos. All participants were told to take six tablets every day from the regular box, and up to two tablets a day from the as-needed box for pain relief.

The three-month study found no differences among the groups in recovery time, pain, disability, function, symptom changes, sleep or quality of life. About three-quarters of the patients were satisfied with their treatment whether they received medicine, placebos or both.

Dr. Bart W. Koes, who wrote an editorial accompanying the paper, said that even though the study was large and methodologically sound, it was not necessarily the last word on the subject. “The fact that it’s no more effective than placebo does not mean that it doesn’t work for a given patient,” wrote Dr. Koes, a professor of general practice at Erasmus University Medical Center in Rotterdam, Netherlands.

Dr. Williams said that acetaminophen had been shown to be effective for headache, toothache and pain after surgery, but the mechanism of back pain is different and poorly understood. Doctors should not initially recommend acetaminophen to patients with acute low back pain, he said.

But, he added, “If patients already taking it feel they are getting a benefit, then it wouldn’t be wise to tell them to stop.”