CALIFORNIA
The former owner and operator of three medical clinics located in Los Angeles was sentenced today to six years and six months in prison for submitting more than $4.5 million in fraudulent claims to Medicare, according to officials.
Hovik Simitian, 48, of Los Angeles, plead guilty to one count of conspiracy to commit health care fraud on Aug. 18.
U.S. District Court Judge Beverly Reid O’Connell of California also ordered Simitian to pay $1.6 million in restitution to Medicare, officials said.
Simitian owned and operated Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic, three medical clinics in Los Angeles.
“Not only is it illegal to pay for patient referrals – it potentially compromises patient care,” said U.S. Attorney Eileen M. Decker.
Adding, “This scheme took nearly $1.7 million from the taxpayer-funded Medicare program, which paid bills submitted for services that in some cases were never provided. We will continue to fight health care fraud to protect Medicare – an important system that provides access to health care for millions of Americans.”
In connection with his guilty plea, Simitian admitted that from approximately February 2010 through June 2014, he and his co-conspirators paid illegal cash kickbacks to patient recruiters who brought Medicare beneficiaries to the clinics.
Simitian also admitted that he and his co-conspirators then billed Medicare for lab tests and other services that were not medically necessary or were not actually provided to the Medicare beneficiaries.
Simitian admitted that he submitted a total of $4.5 million in false and fraudulent claims to Medicare and Medicare paid $1.6 million on those claims, according to authorities.