Alleged Medicare Fraud Ring Busted In L.A.
Five members of a Russian-Armenian organized crime ring in Southern California have been indicted for allegedly
bilking Medicare out of more than $20 million.
Prosecutors said the group ran medical clinics and labs in L.A., Glendale and Pasadena that paid marketers for patient referrals and billed Medicare for tests that were unnecessary or were not done.
The group’s alleged ring leader was a former colonel in the Soviet army, 56-year-old Konstantin Grigoryan of Altadena. His wife and son-in-law were also members.
The alleged fraud took place between 1997 and 2005. The defendants have been charged with conspiracy, health care fraud, Medicare kickbacks, making false statements to Medicare and money laundering.
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