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Businessman Sentenced to Seven Years for $3.3 Million Medicare Fraud Scheme

Posted on May 26, 2015

LOS ANGELES


u.s.DISTRICT COURT CENTRAL DISTRICTA federal judge on Tuesday sentenced the former owner of a Los Angeles-based medical supply company to seven years in prison for his role in a fraud scheme.

Hakop Gambaryan billed Medicare $3.3 million in fraudulent claims as a result of the scheme, officials said.

Gambaryan was sentenced today to seven years in prison for his role in a fraud scheme that resulted in $3.3 million in fraudulent claims to Medicare.

In March, a jury convicted Gambaryan, 55, of East Hollywood, California, of four counts of health care fraud, officials said.

U.S. District Court Judge Otis D. Wright II also ordered Gambaryan to pay $1.7 million as restitution.

 The evidence showed the following during the trial:

  • Between March 2006 and December 2012, Gambaryan paid cash kickbacks to medical clinics for fraudulent prescriptions for durable medical equipment, which the patients did not need.
  • Gambaryan then used these prescriptions to bill Medicare for the unnecessary equipment.
  • Gambaryan personally delivered power wheelchairs to many beneficiaries who were able to walk without assistance.
  • In one case, Gambaryan carried a power wheelchair up a flight of stairs for a woman who lived in a second floor apartment with no elevator.
  • In another case, the power wheelchair would not fit inside the beneficiary’s home, so Gambaryan put it in the beneficiary’s garage.

Gambaryan submitted false documents to support the fraudulent claims, including fake home assessments when no home assessments actually occurred, according to officials.

In addition, officials said Gambaryan photocopied beneficiaries’ signatures hundreds of times to create the appearance that the beneficiaries consented to ongoing equipment rentals, when they did not.

At least two of the beneficiaries had passed away prior to the date they supposedly signed the rental agreements, according to authorities.

COURT INFORMATION LINKS:

US SUPREME COURT FEDERAL COURT WEBSITE LINKS FBI PRESS RELEASES / MOST WANTED CIA PRESS RELEASES / LIBRARY DEPARTMENT OF JUSTICE / PRESS RELEASES FEDERAL TRADE COMMISSION: HOW TO HIRE A LAWYER FEDERAL COUNTER TERRORISM GUIDE AMERICAN COURTHOUSE INFORMATION

NEWS SOURCES:

THE GUARDIAN CNN NEWS COURTHOUSE NEWS SERVICE THE NEW REPUBLIC HUFFINGTON POST CBS NEWS MSNBC NEWS MEDIA MATTERS FOR AMERICA CENTER FOR PUBLIC INTEGRITY NPR NEWS INSTITUTE FOR FREE SPEECH BBC ROLLING STONE FACTCHECK.ORG

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