Chiropractor Sentenced To 30 Months In Prison For Defrauding The NBA Players’ Health And Welfare Benefit Plan Of $1,300,000

Damian Williams, the United States Attorney for the Southern District of New York, announced today that PATRICK KHAZIRAN, a/k/a “Dr. Pat,” was sentenced to 30 months in prison for his role in a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”).  U.S. District Judge Valerie E. Caproni imposed the sentence. 

U.S. Attorney Damian Williams said: “As a medical provider, Patrick Khaziran had a responsibility not to abuse his position of trust.  Instead, Khaziran used his role as a licensed chiropractor to generate dozens of fraudulent invoices for at least 22 former NBA players.  He did this to enrich himself and his co-conspirators at the expense of the NBA Players’ Health and Welfare Benefit Plan.  Today’s sentence sends a clear message that those who engage in health care fraud schemes, particularly medical providers, will face stringent penalties.”   

According to the Information, public court filings, and statements made in court:

The Plan is a health care plan providing benefits to eligible active and former players of the NBA.  KHAZIRAN is a chiropractor licensed in the State of California who owns and operates a chiropractic and rehabilitation office in Los Angeles, California (“Chiropractic Office-1”). Chiropractic Office-1 serves the general public and also provides rehabilitation services to professional athletes.

From at least in or about 2016, up to and including at least in or about 2019, KHAZIRAN participated in a scheme with several other former NBA players, including Terrence Williams and Keyon Dooling, to defraud the Plan.[1]  KHAZIRAN’s role in the scheme was to provide false documentation showing that former NBA players received certain medical services when, in truth and in fact, the medical services were never provided. 

KHAZIRAN accomplished his role in the scheme in two ways.  First, beginning in 2016, KHAZIRAN created, and caused others to create, fraudulent invoices for former NBA players.  The former NBA players that received fraudulent invoices, in turn, submitted the fraudulent invoices to the Plan to request reimbursements to which they were not entitled.  Second, KHAZIRAN charged, and caused others to charge, the Plan-issued debit cards of former NBA players.  The Plan-issued debit cards were intended to be used by Plan participants to pay for eligible medical services at the point of service.  However, KHAZIRAN charged the Plan-issued debit cards of former NBA players for medical services that were never actually provided.  In total, KHAZIRAN’s fraudulent invoices and fraudulent debit card charges resulted in approximately $1.3 million in losses to the Plan.  In return for his participation in the scheme, KHAZIRAN received approximately 33% of that amount, i.e., approximately $439,000.  The remaining fraud proceeds were kept by the former NBA players with whom KHAZIRAN conspired.

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In addition to his prison term, KHAZIRAN, 40, of Los Angeles, California, was ordered to forfeit $439,000 and pay restitution of $1,300,000.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Ryan B. Finkel and Daniel G. Nessim are in charge of the prosecution.