U.S. Department of Justice Secures Conviction of Pharmacist

On May 18th, 2021, the Special Investigative Unit of RJN Investigations, Inc., was notified by the U.S. Department of Justice regarding the successful prosecution in the case of United States vs. H. Melamed. In this case, Hootan Melamed was found to be the De Facto, owner of “New Age Pharmaceuticals, Inc.” The U.S. Department of Justice alleged that he submitted claims for prescription pharmaceuticals and DME (Durable Medical Equipment) that were generated through a secret pattern of bribes to doctors to induce the doctors to refer patients to particular pharmacies and DME providers in violation of the doctors’ fiduciary duty to their patients. After a 3-year criminal investigation, on March 29th, 2021, Hootan Melamed pled guilty to one count of “Conspiracy to Commit Offense and Defraud U.S.” In the course of the investigation, it was determined that this was Melamed’s second felony conviction and that he lived in a 12-million-dollar, 15,000 square foot mansion that he had put under his mother’s name to shelter assets from his wife during a divorce.

Starting back in October 2018, the RJN SIU began working with the U.S. Department of Justice to assist in their investigation and provide financial documents which included cancelled checks made payable to New Age Pharmaceuticals, Inc. on questionable claims. As part of the plea bargain agreement, Hootan Melamed agreed to cooperate in other investigations and his final sentencing is now scheduled for October 4th, 2021, before Federal Judge Marilyn Huff.


Formed in 1996, the RJN SIU Division was created to assist California employers, insurance carriers and TPA firms in securing professional assistance so as to detect, investigate and prosecute insurance fraud. To date, the unit has trained well over 3,750 examiners and the documented referrals by this unit have resulted in over 200 convictions for workers’ compensation insurance fraud in California. In just the last three years, we have secured $ 894,120.00 in court ordered restitution on behalf of our valued clients.

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