Corporate Compliance

CA couple indicted for DME fraud scheme

Compliance Monitor, February 3, 2010

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A Los Angeles married couple will serve time in prison for their participation in a $1 million durable medical equipment (DME) fraud scheme, according to a Department of Justice press release.
 
Gevork Kartashyan, 45, and Eliza Shubaralyn, 42, owners and operators of CHH Medical Supply, were convicted in July 2009 of healthcare fraud, for paying kick backs in exchange for Medicare beneficiary numbers. The couple then used those numbers to bill Medicare for $950,000 in medically unnecessary power wheelchairs and wheelchair accessories.
 
Kartashyan and Shubaralyn will serve a two year prison sentence and pay a restitution of $400,000.



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