Four California residents have been sentenced to prison for their involvement in a major hospice fraud and money laundering scheme that caused Medicare to lose nearly $16 million. The group created fake hospice companies, billed Medicare for services that were never provided, and then moved the stolen money through hidden networks to avoid detection.
The fraud took place between July 2019 and January 2023. During these years, several sham hospices sent large numbers of false claims to Medicare, claiming they had provided end-of-life care to patients. Medicare trusted these claims and paid millions of dollars, unaware that the hospices were not offering real medical services.
The scheme involved six people, including Juan Carlos Esparza, Susanna Harutyunyan, Karpis Srapyan, Mihran Panosyan, and Petros Fichidzhyan, who had been sentenced earlier. Together, they carried out one of the most significant hospice-related fraud cases in California. Authorities explained that the group used advanced methods to hide their activities, such as stolen identities and fake documentation, making it difficult to trace the fraud initially.
How the Sham Hospices Operated Behind the Scenes
The heart of the scheme lay in four hospice companies that appeared legitimate but provided no actual services. One of these, House of Angels Hospice, was owned by Juan Carlos Esparza. However, to mask their involvement, Esparza, Fichidzhyan, and Srapyan used the identities of foreign nationals as the listed owners of the hospices. These individuals had no real connection to the businesses.
Using these stolen identities, the defendants opened bank accounts, signed leases, registered phones, and completed paperwork for Medicare. This allowed the operations to continue under the radar, as investigators initially believed the owners were the foreign nationals listed on official documents.
The group submitted claims stating that patients were receiving hospice services such as nursing care, medical equipment, and end-of-life support. In reality, these services were never provided. Some patients did not even know their names were being used in hospice claims. By presenting false records and documents, the fake hospices convinced Medicare to release payments.
Over the duration of the scheme, the group collected almost $16 million. The fraud was notable not only for the amount stolen but also for how it misused a program designed to support vulnerable patients in need of compassionate care.
Moving and Hiding the Money Through Money Laundering
After receiving the fraudulent payments, the defendants began moving the money through a complex laundering system. This was where Susanna Harutyunyan and Mihran Panosyan played significant roles. They helped transfer the funds across multiple accounts, making the money appear legitimate.
To support the money laundering efforts, the group created fake identification documents and kept credit cards, check books, and bank papers under the names of the same foreign nationals used earlier in the fraud. They used shell companies—businesses that exist only on paper—to hold and move money. These companies allowed them to shift funds without raising immediate suspicion.
Money was transferred from account to account, often in smaller amounts, in an attempt to make the transactions look routine. Despite these efforts, federal investigators eventually uncovered the true source of the funds.
During the investigation, authorities were able to seize $2,920,383 from bank accounts tied to the scheme. In addition, during the sentencing of Petros Fichidzhyan in May 2025, a preliminary order was issued to forfeit two homes that had been purchased using the fraud money. These actions were part of the government’s efforts to recover the stolen funds and return them to the health care system.
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Prison Sentences and Financial Penalties for All Defendants
All individuals connected to the scheme have now been sentenced. Juan Carlos Esparza, 33, received 57 months in prison and was ordered to pay $1,825,012 in restitution. Susanna Harutyunyan, 39, was sentenced to 15 months in prison and ordered to pay $2,822,963 in restitution.
In earlier sentencings, Karpis Srapyan, 35, was sentenced in October 2025 to 57 months in prison and was ordered to pay $3,203,574. Mihran Panosyan, 47, was sentenced in September 2025 to 57 months in prison and ordered to pay $4,680,146.
Another key participant, Petros Fichidzhyan, 44, was sentenced in May 2025 to 12 years in prison and ordered to pay $17,129,060. His sentence included charges of health care fraud, aggravated identity theft, and concealment money laundering.
All defendants pleaded guilty between February and July 2025. The investigation was carried out by federal agencies responsible for protecting Medicare and identifying health care fraud. Their coordinated efforts led to exposing the fake hospices, prosecuting the individuals involved, and seizing assets bought with stolen funds.
The case forms part of national-level actions aimed at preventing fraud in federal health care programs. These actions have identified numerous fraudulent schemes and have helped recover billions in stolen funds.