Dr. Robert Joseph, a podiatrist in California, who was indicted by the United States District Court for the Central District of California for the illegal practice of colluding with pharmaceutical marketers for writing prescriptions of compounding drugs, is now working undercover for the FBI. In exchange for a lower sentence due to his indictment in 2018, Dr. Robert Joseph is now working undercover to deceive medical facilities and doctors by intentionally offering illegal deals.

This article is to help warn medical facilities and doctors of the devious practice that the FBI is taking to catch them in the act. It is one thing to investigate incidences due to patient complaints or whistleblowers but to intentionally embed a mole to create a problem when there is no problem, this is how the FBI works. If Adam is tempted by the apple because it was offered is that the same as if he had already bit the apple without the temptation created by Eve? In this case, the FBI is going fishing in hopes of finding something.

A medical facility in Huntington Beach, CA was a victim of Dr. Robert Joseph and the FBI. Dr. Joseph came into the facility wearing a concealed camera and had the intention of catching them by offering an illegal deal. Fortunately, this medical facility did not take the bait but wanted to share their experience with the public so that other medical offices and doctors will be aware of Dr. Robert Joseph.

As the public, we want doctors to care about us and to do what’s best for us and not be greedy. That is the oath they take when they become doctors. There are doctors who are tempted to sway but being tempted versus actually acting on greed is not the same. What the FBI is doing is turning the tempted into greedy criminals. 

Ref: https://www.justice.gov/file/1076086/download

If you were to run a search on the Irvine Company you will find that they have had many historical issues with tenants in the City of Irvine. The Irvine Company is privately owned by one man, Donald Bren and he owns a majority of the city’s real estate which includes housing, retail centers, schools, and parks. The organization seems like a corporate conglomerate but they operate more like an organized group of extortionists. They have used tactics to control their tenants and feel that they have the right to change the rules on their tenants and bypass government regulations whenever they deem fit for their own advantage. Of course, they have high-powered attorneys and government officials working for them. They even have their paid lobbyists to work the system so that they can make their own rules on city policies. Many of the Irvine tenants feel like they were misled or controlled by their leases and can never fight for their rights because they don’t have the money, time, and energy to go through the legal battle against one of the wealthiest real estate companies in America.

In a case of a business tenant operating in Irvine with multiple salon locations, a tenant of over 10 years in Irvine, Images Luxury Nail Lounge wanted to sell one of their locations after coming out of the pandemic in order to pay their debt. The Irvine Company would not allow them to reassign their lease and rejected all new tenant applications, even when the applicants had great credit but were told by the Irvine Company, “We just don’t like the applicants.” The reason the Irvine Company wants to hold Images hostage, is because they want to force Images to payout their entire lease terms before they would transfer the lease. They are bullying Images into staying so that they can guarantee their rent, otherwise, the Irvine Company would take over the business and Images would walk away with nothing. Just like any business owner, one would want to have the freedom to come and go and move into or out of a city but the Irvine company is making it challenging.

When Images first signed their lease at the Eastbluff location with the Irvine Company, Images was not informed of parking construction delays so this caused the grand opening of their salon to be postponed for over a year.

Then during COVID, Governor Gavin Newsom had required complete closures of salons but the Irvine Company told Images that they could go ahead and reopen and that the City would allow it. Images was informed that the Sheriff and city officials will not shut the business down but Images was afraid to open due to the fear of the Governor’s order, the County reopening guidelines, and safety for their patrons and employees so they remained closed, but this shows how The Irvine Company would disregard Government orders and public safety so that they can collect rent from their tenants. Irvine did not really help the businesses or tenants in their city during the pandemic by establishing a “rent relief” which was really only a deferral of rent of 90 days that made it difficult for many businesses to pay both the current rent and deferral in such a short period of time.

There are plenty of blogs, websites, and social media stories written by first-hand incidences of tenants similar to Images Luxury Nail Lounge complaining about the Irvine Company. Irvine tenants, whether they are business tenants or housing tenants feel extorted or misled into thinking that Irvine is one of the most “desirable” places to live and work but if you see the endless complaints on BBB’s website, and blogs by tenants being kicked out of their properties even when they have leases in place or an entire website dedicated to Irvine Company violating building codes and trying to cover it up, you’ll see that Irvine is not a desirable place to live or work and the Irvine Company is to blame.

Those who have been independent contractors or “gig” workers in California are familiar with Assembly Bill 5 (AB5). This is a legislation that went into effect on Jan. 1, 2020, and is supposed to regulate companies that hire gig workers such as Uber, Lyft, and DoorDash to reclassify them as employees. Under AB5, independent contractors must pass the strict three-pronged test (ABC Test). This caused issues for many independent contractors who did not consider themselves an employee and could not pass the ABC test. So in September 2020, Assembly Bill 2257 was passed, which rewrote a number of the requirements of AB5 and exempted a substantial list of job categories. Instead of the ABC Test, they must pass the Borello Test, which is not as strict and is used by the IRS.

Under the Borello Test, the most significant factor is whether the hiring company has control or the right to control the worker both as to the work done, the manner, and the means in which it is performed.

Then on September 30, 2021, AB1561 passes to amend AB2257, which allows licensed barbers, electrologists, cosmetologists, manicurists, and estheticians to  qualify as Independent Contractors if they meet the Borello test and also:

 (ii) Sets their own hours of work and has sole discretion to decide the number of clients and which clients for whom they will provide services.

(iii) Has their own book of business and schedules their own appointments.

(iv) Maintains their own business license for the services offered to clients.

(v) If the individual is performing services at the location of the hiring entity, then the individual issues a Form 1099 to the salon or business owner from which they rent their business space.

(vi) THIS SUBPARAGRAPH SHALL BECOME INOPERATIVE, WITH RESPECT TO LICENSED MANICURISTS, ON JANUARY 2025

This last subparagraph (vi) only mentions “manicurists.” Why are manicurists singled out? Cosmetologists, Barbers, Estheticians, and Manicurists are all licensed and governed by the same State Board of Barbering & Cosmetology, so why do manicurists become inoperative under AB5 exemptions on January 1, 2025, and not the other licensed techs in the industry?  Is this discrimination against manicurists?

Financial Summit Inc., which contracts many licensed manicurists for salons in Southern California, became an advocate for manicurists due to the passing of this discriminating provision. When Financial Summit Inc. went public and drew attention to the unfair law, they were singled out and audited by EDD as a form of government retaliation. Financial Summit Inc. provided evidence to satisfy the Borello Test and requirements under AB1561 but was still fined $178K for 2017-2019, for the years conveniently right before the AB5 law passed.

Financial Summit Inc. had provided written contracts between them and their 1099 techs which were reported to the IRS. Each of the licensed techs under this contract had to provide their own liability & malpractice insurance. They were given their own keys to access the salons at any time and made appointments with their clients directly. The techs set their own schedules, bought their own tools and supplies, and charged their own rates.

So when Financial Summit Inc.’s attorney contested the fines, EDD threatened to audit 2020-2023 as well, even when the current AB1561 law allows licensed manicurists to qualify as Independent Contractors until 2025. Therefore, this action by EDD against Financial Summit is an act of totalitarianism.

A new bill AB1818 has been proposed by Senator Janet Nguyen to delete the January 1, 2025, inoperative date, thereby making licensed manicurists subject to this exemption indefinitely. You can fight the discrimination and help pass this bill by visiting https://fastdemocracy.com/bill-search/ca/20212022/bills/CAB00024067/#billtexts to vote and provide public comments.