WASHINGTON, Sept. 18 /PRNewswire-USNewswire/ -- Eighteen Los Angeles area residents have been charged in eight separate indictments for their roles in Medicare fraud schemes totaling more than $33 million, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and U.S. Attorney for the Central District of California Thomas P. O'Brien announced today.
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Federal and state Medicare Fraud Strike Force (MFSF) agents arrested 18 people today in the greater Los Angeles area. Agents targeted durable medical equipment (DME) company owners, medical professionals and medical clinic owners who are alleged to have engaged in various schemes to defraud Medicare of $33,264,133 in fraudulent billing. The eight indictments in which the defendants are charged outline various types of fraud including schemes involving the fraudulent ordering of power wheelchairs, orthotics, hospital beds, enteral nutrition and feeding supplies. Enteral nutrition is sustenance ingested by patients through a feeding apparatus. In addition, federal agents began executing search warrants at six locations throughout Los Angeles County.
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"Today's arrests are the result of government agencies working together to proactively target those allegedly stealing taxpayer money," said Acting Assistant Attorney General Matthew Friedrich. "For the more than 40 million Americans who rely on the Medicare program for health coverage, law enforcement efforts to bring those committing these frauds to justice as quickly as possible will also help protect the integrity of the program and taxpayer dollars."
"Strike Force operations are a new weapon in federal law enforcement's arsenal to protect American taxpayers from Medicare fraud," said U.S. Attorney Thomas P. O'Brien. "With real-time access to Medicare claims data, law enforcement in Los Angeles is developing better tools to enhance our abilities to combat fraud in our community."
"Any time false claims are submitted for payment, the nation's health insurance programs suffer," said Daniel Levinson, Inspector General of the Department of Health and Human Services. "OIG will continue to work closely with our law enforcement partners to identify any individuals who manipulate the system to illegally obtain crucial Medicare or Medicaid dollars."
"Those who defraud the Medicaid and Medicare programs and private insurance companies increase the cost of health care for everyone," said Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles. "Career criminals and organized criminal groups have become involved in health care fraud in Southern California and across the country. The FBI is committed to rooting out scams and reclaiming money improperly paid out by government-sponsored programs and private insurers. The Strike Force affords us the necessary prosecutorial support to successfully address this multi-billion dollar crime problem."
"The use of real-time Medicare claims data continues to help the Strike Force team members identify potential fraudulent activities in Southern California," said Kerry Weems, acting Administrator of the Centers for Medicare and Medicaid Services (CMS). "With more than 10,000 active durable medical equipment suppliers in California, the Strike Force's efforts are helping to protect Medicare and Medicare beneficiaries."
The first indictment charges Armen Shagoyan, 38, Edward Aslanyan, 35, Carolyn A. Vasquez, 44, and Zurama C. Espana, 29, with conspiring to submit more than $16.3 million in Medicare claims for medically unnecessary power wheelchairs between April 2007 and June 2008 from medical clinics they owned in Los Angeles and Van Nuys. In addition to the clinics, Aslanyan and Shagoyan are charged with ownin
