In a significant development in the fight against health care fraud, five individuals were arrested yesterday in Los Angeles on charges related to a massive scheme to defraud Medicare of over $15 million. The indictment, unsealed yesterday, details an elaborate operation involving sham hospice companies and extensive money laundering activities.
The principal defendants—Petros Fichidzhyan, 43, of Granada Hills, Juan Carlos Esparza, 32, of Valley Village, and Karpis Srapyan, 34, of Van Nuys—allegedly orchestrated a series of fraudulent hospice companies. Although these companies were purportedly owned by foreign nationals, the indictment reveals that the true owners were Fichidzhyan, Esparza, and Srapyan. The trio allegedly used the foreign nationals’ identifying information to open bank accounts, sign property leases, and facilitate other aspects of their scheme.
Fraudulent Claims and Identity Theft
Central to the fraud was the submission of false claims to Medicare for hospice services that were never rendered. The defendants are accused of misappropriating the identities of doctors to falsely certify that patients required hospice care. In reality, these patients were not terminally ill and had neither requested nor received any such services. The indictment also alleges that in some cases, the same beneficiaries were claimed to have received services from multiple sham hospices simultaneously.
Money Laundering Allegations
The scheme extended beyond health care fraud to involve extensive money laundering operations. Alongside Fichidzhyan, Esparza, and Srapyan, defendants Susanna Harutyunyan, 38, and Mihran Panosyan, 45, both of Winnetka, were implicated in laundering the proceeds from the fraudulent activities. The ill-gotten gains were allegedly used to purchase real estate, vehicles, and other luxury items.
Charges and Potential Sentences
The charges brought against the defendants are serious and carry substantial penalties. Fichidzhyan, Esparza, and Srapyan face charges of conspiracy to commit health care fraud and aggravated identity theft. Fichidzhyan and Esparza are also charged in Los Angeles health care fraud. Money laundering and conspiracy to launder money are the charges brought against all five defendants. Furthermore, Fichidzhyan is charged with making false statements. If convicted, each defendant faces up to 40 years in prison, with Fichidzhyan, Esparza, and Srapyan facing an additional mandatory minimum of two years in prison for the aggravated identity theft charges.
Law Enforcement Response
This case is part of a broader initiative by the Justice Department to combat health care fraud, particularly in the greater Los Angeles area. Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division emphasized the department’s commitment to prosecuting such cases. Acting Assistant Director in Charge Krysti E. Hawkins of the FBI Los Angeles Field Office and Special Agent in Charge Timothy B. DeFrancesca of the Los Angeles Regional Office of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
Ongoing Investigations and Prosecution
The FBI and HHS-OIG are leading the investigation into this case, with Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section spearheading the prosecution. This effort is part of the Health Care Fraud Strike Force Program, which has charged more than 5,400 defendants since its inception in March 2007. Collectively, these defendants have billed more than $27 billion to federal health care programs and private insurers.
Broader Implications of Los Angeles Health Care Fraud
The arrests and charges underscore the ongoing challenge of health care fraud and the significant resources devoted to combatting it. The Centers for Medicare & Medicaid Services, in conjunction with HHS-OIG, continue to implement measures to hold providers accountable and prevent such fraudulent schemes. This case highlights the importance of vigilant oversight and the relentless efforts of law enforcement to protect the integrity of federal health care programs.
As the investigation progresses, further details may emerge, shedding more light on the extent of the fraud and the network of individuals involved. The Justice Department’s dedication to uncovering and prosecuting such schemes remains unwavering, aiming to ensure that health care resources in Los Angeles as well as in other locations are used appropriately for the benefit of genuine beneficiaries.
