Los Angeles clinic owner sentenced in $4.5 million Medicare fraud
Hovik Simitian paid kickbacks to “patient recruiters” for bringing Medicare beneficiaries to his clinics.
The former owner and operator of three different health clinics in Los Angeles was sentenced Monday to six and a half years in prison for his role in a scheme that produced more than $4.5 million in fraudulent Medicare claims, the U.S. Attorney's office and FBI announced.
Hovik Simitian, 48, of Los Angeles pleaded guilty to conspiracy to commit healthcare fraud in August. In addition to his prison term, Simitian has also been ordered to pay $1,668,559 in restitution to Medicare.
[Also: Co-conspiring family members sentenced in Miami pharmacy fraud scheme]
According to the Department of Justice, Simitian owned and operated Columbia Medical Group, Life Care Medical Clinic and Safe Health Medical Clinic, all located in Los Angeles. Simitian admitted to authorities that from roughly February 2010 through June 2014, with the help of co-conspirators, illegal cash kickbacks were paid to "patient recruiters" for bringing Medicare beneficiaries to his clinics. Simitian also admitted that with the help of his co-conspirators, he then billed Medicare for lab tests and other services that were either not medically necessary or were never actually performed. Authorities say fraudulent documents were created and provided as support for those claims.
A total of $4,526,791 in fake claims were submitted to Medicare. Medicare paid $1,668,559 on those claims, which matches the amount Simitian has been ordered to pay in restitution.
The case was investigated by the FBI and Health and Human Services Office of the Inspector General, and was brought as part of the Medicare Fraud Strike Force. The Force operates in nine cities nationwide.
Twitter: @BethJSanborn
