5 Doctors, Marketer Plead Not Guilty in Referral Case

Five doctors and a medical marketer pleaded not guilty Wednesday to charges that they participated in an illegal patient referral scheme, after a judge rejected their arguments that the law they are accused of breaking is unconstitutionally discriminatory.

The five doctors are accused of paying marketer Debra Mattes of Woodland Hills on a per-head basis to get them patients from attorneys in personal injury and workers compensation lawsuits.

Such activity is considered a felony under the California Business and Professions Code, under a little-used law that has never been tested in higher courts.

The arraignments represent a setback for the doctors and Mattes, who had argued that the law under which they were accused violates the Constitution’s equal protection provisions. They had argued that the case ought to be thrown out, because the law applies to physicians, but not to dentists and chiropractors.

Commissioner John Ladner, who heard the pre-arraignment arguments in Municipal Court, agreed that constitutional issues were raised by the case. But in the end, he ruled against the defendants, saying the state “had a compelling interest” to regulate the activities of physicians, whether or not it regulates the activities of dentists and chiropractors.

The law should not be thrown out, Ladner said, “just because the state did not provide for a mechanism (to regulate) other health care practitioners.”

Accused in the case along with Mattes are Drs. Karl Epstein of Tarzana, Philip Lichtenfeld of Studio City, Robert Glazer of Beverly Hills, Vladimir Golovchinsky of Encino and Ronald Perelman of Woodland Hills.

All have denied guilt, saying they paid Mattes only to provide legally allowed marketing services.

Attorney Leonard Levine, who represents Perelman in the case, said the doctors were considering appealing Ladner’s decision on the constitutionality of the law.