United States v. Universal Trade and Industries, Inc., Doing Business as Universal Medical Laboratories, and Fereydoun Karimi

Defendants appeal from their convictions of Medi-Cal abuse, contending there was a fatal variance between the indictment and the proof adduced at trial in that the evidence showed the remuneration was offered in return for the referral of individuals (42 U.S.C. § 1396h(b)(2)(A)), not for the ordering of services (42 U.S.C. § 1396h(b)(2)(B)) as charged in the indictment. Defendants also argue that the evidence was not sufficient to support the conviction because they lacked specific intent to violate the law. We find there was no variance between the indictment and proof, and the proof was sufficient to support the conviction. Accordingly, the judgment is affirmed.

FACTS '

Appellant Universal Trade and Industries, Inc., doing business as Universal Medical Laboratories, (“Universal”), is a large medical laboratory that performs many services paid for by Medi-Cal. In 1979, Appellant Karimi was the administrative director of Universal.

In August 1979, Universal was contacted about a possible new account by Dr. Dorr, the administrator of a medical clinic in Glendale. Unbeknownst to Universal, Dorr was acting in concert with the F.B.I. Dorr secretly tape-recorded all of his…