INLAND: Chaudhuri accused of fraud, racketeering

Prime Partners IPA and Meadowview IPA Medical Group file suit against Dr. Kali Chaudhuri


Published: 01 November 2011 06:19 PM

Two Inland area medical groups and a Corona doctor are suing Hemet orthopedic surgeon and businessman Dr. Kali Chaudhuri, accusing him and businesses with which he is affiliated of cutting off more than $1 million that's owed to them and jeopardizing patient care.

Prime Partners IPA of Temecula and Meadowview IPA Medical Group in Corona on Monday filed a lawsuit against Chaudhuri, Hemet Community Medical Group, KM Strategic Management, Michael Foutz and attorney William Thomas in Riverside County Superior Court.

In a second action, Dr. Festus Dada, chairman and CEO of Prime Partners, on Monday also filed a lawsuit against Chaudhuri, Temecula Valley Physicians Medical Group, Michael Basch, Foutz, KM Strategic Management and Thomas.

The lawsuits accuse Chaudhuri and his associates of fraud, racketeering, breach of contract and unfair business practices. The medical groups and Dada are seeking more than $1 million in damages.

Chaudhuri couldn't be reached Tuesday because he is out of the country, associates said. Foutz, an owner and operator of KM, said the allegations are baseless and result from a business disagreement and lawsuit that was filed earlier this year against two medical groups with which Dada is affiliated.

Foutz said he and his partners terminated two contracts with Dada and his affiliates and they are trying to shift blame for their losses.

Dada and his entities claim that KM is withholding more than $1.5 million from the Prime Partners medical group and at least $250,000 from the Meadowview, according to the lawsuit. They also allege that Chaudhuri has tried to gain ownership control of the medical groups with forgery, falsifying documents and concealing and misrepresenting financial records.

In his lawsuit, Dada claims that Chaudhuri is denying him benefits as a stockholder in Temecula Valley Physicians medical group.

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