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The same in-house attorney who represented California’s State Compensation Insurance Fund (State Fund), Bruce Roth, who worked out of the Glendale office and was sued from 2007 to 2010 by now-on-the-lam in Lebanon workers’ compensation fraudster and hack spinal surgeon, Dr. Munir Uwaydah, for investigating him and withholding millions of dollars in payment demands, has now been sued for fraud by State Fund itself by being accused of masterminding a ten million dollar settlement with Global Holdings’ associates: Dr. Sana Khan, Dr. Alexander Zaks, and their various medical mills, for his own profit!

The irony of this is almost beyond belief…

Back in late 2007 and early 2008, about two plus years before Uwaydah fled the United States after the arrest of his consort, Kelly Soo Park, in the Summer of 2010 for the murder of Juliana Redding, Uwaydah found out he was being investigated by a vendor investigator hired by Bruce Roth called Martin Frost Investigations. For several months, Uwaydah heard rumors that he was being investigated but he couldn’t figure out by whom until a former employee of his, a Shannon Moore, happened to make contact with Uwaydah and told him she had been contacted in December of 2007 by an investigator who questioned her about Uwaydah’s activities. So, Uwaydah ran with it from there into litigation, his usual and customary modus operandi, and took the case all the way to the Court of Appeals of California, Second District, Division Seven (lawsuit filed 5/18/10).

This is very typical of Uwaydah, to appeal a case to the hilt that he has lost. But it seems that although Uwaydah lost for the most part in his civil action, State Comp apparently made some kind of settlement with him.

When adjustercom contacted Bruce Roth in late Summer—early Fall 2010 for comment and any details about the alleged settlement with Uwaydah, Roth stated he could not talk to us about anything concerning the case or alleged settlement, but wished us well. However, it appears Roth and State Fund successfully argued that Roth met his threshold showing that the investigation into Uwaydah is a protected activity within the meaning of subdivisions. In other words, as we found out in Widom v. Stockwell just days ago, investigations are a protected activity and one cannot sue for defamation-damages. Now, ironically, Roth is getting a taste of his own medicine.

The case is filed with the United States District Court, Central District of California, Southern Division and dated June 29th 2012. The Complaint states it is for Civil RICO, Conspiracy to Commit Civil RICO, Fraud, and Violation of California Government Code 1090. It demands a Jury Trial.

The Complaint alleges that Bruce Roth secretly, behind his supervisors’ backs, entered into a settlement agreement while feigning over time an investigation against Dr. Sana Khan and Dr. Alexander Zaks, and over twenty-something listed medical firms. It alleges Roth flim-flammed his status reports on this case he was

The Complaint alleges that Bruce Roth secretly, behind his supervisors' backs, entered into a settlement agreement while feigning over time an investigation against Dr. Sana Khan and Dr. Alexander Zaks...

fully in charge of, and that through deception he was all along creating a settlement that would pay 100% to 140% on ten million dollars’ worth of medical billings. It accuses Roth of being in cahoots with Khan, Zaks, and the medical clinics and for profiting himself personally by the settlement.

Some of the language from the complaint reads:

“State Fund is informed and believes, and thereon alleges, that Roth had a financial interest in the Fraudulent Settlement which prevented him from exercising absolute loyalty and undivided allegiance to State Fund. State Fund is further informed and believes, and thereon alleges, that, prior to executing the Settlement Memorandum, Roth received implied or direct assurances from the Fraudulent Providers that he would receive a direct monetary payout for executing the Settlement Memorandum on terms favorable to them, and that Roth would be provided a lucrative employment opportunity. And in fact, it was later disclosed that Roth had accepted a position as Chief Legal Counsel for companies closely associated with the Fraudulent Providers before leaving State Fund’s employment.”

State Fund stated based on information from Global Holdings’ web site, that Roth began working on behalf of Global Holdings, Inc. as Chief Legal Counsel in March of 2010 while he was still employed at State Fund. It alleged Khan-owned medical clinics launched fraudulent litigation against State Fund, accusing State Fund of racketeering by withholding medical liens worth $20 million. That lawsuit was thrown out this year for failure to state a claim.

"(E)ach of the liens related to the Khan Litigation was fraudulently billed at amounts significantly over the OMFS [Official Medical Fee Schedule], for services that were either not rendered or were medically unnecessary," the Complaint also states.