Brothers battle in court over clinic that uses ketamine to treat depression

BY BRADEN CARTWRIGHT
Daily Post Staff Writer

Two brothers are fighting a legal battle over millions of dollars in profits from a Palo Alto clinic that uses ketamine to treat depression.

Dr. Rameen Ghroieshi started Palo Alto Mind Body in June 2019 at 206 California Ave. He hired his older brother Reza Ghroieshi as chief operating officer, according to their dueling lawsuits.

The brothers have accused each other of taking money from the clinic for personal expenses, such as flights, hotels, groceries and Apple products for their parents.

Reza Ghroieshi said he helped the clinic navigate health care regulations and insurance policies as revenue grew by 256% from 2019 to 2020.

The brothers signed a deal in April 2022 to pay Reza Ghroieshi a salary and 45% of the clinic’s profits after $1 million — allegedly coming out to $1.4 million in the first four months of 2023, and tens of millions of dollars since then.

In response, Dr. Rameen Ghorieshi said his brother was actually overpaid and stopped checking if treatments were covered by insurance.

One patient allegedly received more than 40 treatments even though his insurance claims were denied.

Dr. Rameen Ghorieshi fired his brother in August 2023. He said his brother used the clinic’s credit cards for his own purchases, including more than $10,000 of Apple products, printers and computer accessories for himself and his family.

Suits fly

Reza Ghroieshi sued his brother in February 2024 in Santa Clara County Superior Court, and Dr. Rameen Ghorieshi counter-sued in January.

Most recently, Dr. Rameen Ghorieshi tried to disqualify his brother’s attorney from the case for allegedly reading stolen emails.

Both sides are due back in court on July 7 to discuss a trial date with Judge Rafael Sivilla-Jones.

Palo Alto Mind Body has an agreement with the Palo Alto VA to do ketamine therapy and gets advanced authorization from other insurance providers to reimburse treatment. 

The clinic specializes in treating depression, anxiety and PTSD that hasn’t responded to antidepressants and therapy, according to its website. The clinic uses nasal sprays and IVs to give patients ketamine — a drug that is also used to sedate horses.