Corporate Compliance

Seventy-three members of crime syndicate indicted for $163M healthcare fraud scheme

Compliance Monitor, October 20, 2010

Five judicial courts across the United States indicted 73 members of a major Armenian-American organized crime syndicate for allegedly perpetrating a $163 million healthcare fraud scheme. The charges stem from the largest Medicare fraud scheme ever committed by a single criminal enterprise, according to a Department of Justice (DOJ) press release.

Judicial courts in California, Georgia, New Mexico, New York, and Ohio charged defendants from the Mirzoyan-Terdjanian crime organization for numerous fraudulent activities including:

  • Billing Medicare for more than $100 million in unnecessary medical treatments
  • Stealing physician identities for illegal billing
  • Stealing thousands of Medicare beneficiaries’ identities
  • Operating at least 118 sham medical clinics in 25 different states
  • Money laundering
  • Credit card fraud
  • Immigration fraud

The Mirzoyan-Terdjanian organization is named for its principle leaders, Davit Mirzoan and Robert Terjanian. The two leaders based their organizations in Los Angeles and New York City, but operated nationally and internationally, according to the DOJ.

The defendants face a variety of charges and will face sentencing at an unidentified date.

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