Former CEO of the Tulare Local Health Care District (TLHCD) Yorai Shimon ‘Benny’ Benzeevi can no longer practice medicine in the state of California.
The Medical Board of the California Department of Consumer Affairs announced today, May 7, that the disgraced onetime emergency room doctor agreed to surrender his physician and surgeon’s certificate. The agreement was signed by Benzeevi on April 20 following a disciplinary hearing.
Benzeevi was ordered to turn over his wall certificate and pocket license, and he will lose all rights and privileges as a physician and surgeon in California.
Benzeevi won’t contest medical board charges – but can’t escape allegations
If he attempts to reinstate his license or seek a new license, the agreement states that he will be forced to pay $49,928.25 in investigatory fees and that he will accept “all of the charges and allegations” in the state’s original complaint.
The allegations that led to Benzeevi surrendering his professional license stem from his illegal conflict of interest while he served as both owner and CEO of Health Care Conglomerate Associates (HCCA) – which was contracted to manage and operate Tulare Regional Medical Center for the TLHCD – and as CEO of the TLHCD.
In 2020, Benzeevi was charged with 40 felony crimes and six misdemeanors. He pleaded no contest in a 2024 Tulare County Superior Court hearing to six felony counts of conflict of interest, one misdemeanor count of failure to disclose his use of district funds to run a smear campaign against a candidate for seat on the TLHCD board, and a final misdemeanor count of using his position as a government official for personal gain.
For his role in defrauding taxpayers, Benzeevi was sentenced to 120 days of house arrest, ordered to perform 420 hours of community service (reduced from 600 hours), received two years of felony probation, and was ordered to pay $2.4 million in restitution to his victims: TLHCD and the Southern Inyo Healthcare District (SIHD). HCCA and Benzeevi were also managing the financially-troubled SIHD.
As part of his agreement with the Medical Board, Benzeevi will effectively accept the allegations of the charges for which he was convicted if he attempts to seek a new medical license in California.
“After years of fighting to be heard, the surrender of his license without contest speaks for itself,” said Patty Drilling Phelps, an organizer of Citizens for Hospital Accountability, which fought to expose Benzeevi and other HCCA officials’ fraud. “The community was right, and now the record reflects that.”
‘Corruption and Dishonesty’ Led to Medical Board Review
Among the crimes mentioned by the medical board was the use of TLHCD funds to finance his lawsuit against the former head of Tulare Regional’s medical executive board. When TLHCD board member Parmod Kumar faced a recall election in 2017, Benzeevi allegedly employed the Israeli company Psy Group to interfere in the campaign of rival candidate Senovia Gutierrez.
Later, after Kumar’s landslide defeat, Benzeevi illegally blocked Gutierrez from taking her seat on the board, according to the misdemeanor he pleaded no contest to.
Benzeevi also engineered a $500,000 line of credit to SIHD from the TLHCD, charging for the service and using the borrowed funds to enrich HCCA. He also arranged for SIHD to borrow money from another company he owned, Vi Healthcare Finance. That loan was secured by future tax income.
The double-dealing CEO also extended loans from HCCA to TLHCD beginning in 2015, and he eventually sold $3 million of TLHCD equipment to a third party company, then signed an agreement for TLHCD to lease back that equipment. He used $2.4 million of those funds to pay TLHCD’s debts to HCCA.
His conviction for these crimes was the primary cause for the initial allegations to remove his license. The Medical Board, however, also cited Benzeevi’s corruption and dishonesty, as well as his general unprofessional conduct as added causes for prohibiting him from practicing medicine.
Case Against HCCA Attorney Resumes Next Week
Benzeevi did not act alone as in the alleged fraud against TLHCD and SIHD. Former HCCA CFO Alan Germany was also convicted on two counts stemming from his involvement in Benzeevi’s actions. Germany was convicted of felony conflict of interest and a misdemeanor for failing to file a financial disclosure form required of all public officials.
For his part in the HCCA scheme, Germany paid $150,000 in restitution to his victims, served two years probation and performed 540 hours of community service work. He was also required to write a letter of apology to residents in the TLHCD. He faced a maximum sentence of three years.
Former HCCA attorney Bruce Greene faced an identical set of charges to those alleged against Benzeevi and Germany. However, Greene rejected a plea bargain deal similar to those offered by the Tulare County District Attorney’s Office to his former co-defendants. In May of 2024, the Tulare County Grand Jury found sufficient cause to indict Greene on 11 felony charges and five misdemeanors.
Greene pleaded not guilty to all charges.
The ongoing criminal case against Greene is in addition to a disciplinary hearing against him before the California State Bar. The state’s attorneys accuse Greene of using his influence with HCCA and TLHCD to benefit himself and his client, Benzeevi. The matter is pending, awaiting the outcome of the criminal charges.
Greene’s criminal trial is scheduled to resume next week before Judge Michael Sheltzer. A pretrial conference is set for 1:30 p.m. on Thursday, May 14. The department location will be announced.
A jury trial for Greene is currently scheduled for 10 a.m. on September 26, with Sheltzer presiding.