The group allegedly tapped into Medicare's Part D drug program for a supply of more than 1 million OxyContin pills that were sold on the street for $23-$27 apiece.
"The organization not only flooded the streets of Los Angeles with an extremely dangerous narcotic, it also bilked a government-run program designed to help the poor and elderly," U.S. Attorney Andre Birotte said in a written statement.
Birotte said the defendants were based at a downtown Los Angeles clinic that allegedly used a cadre of "cappers" to recruit individuals who were given OxyContin prescriptions.
The ring, which also billed Medicare and California's Medical system for more than $6 million for examinations and procedures, allegedly wrote nearly 11,000 OxyContin prescriptions billed to Medicare in an 18-month period.
The two alleged ringleaders who operated the clinic, Mike Mikaelian and Anjelika Sanamian, were arrested this week by a federal, state and local task force. Also charged were Drs. Eleanore Santiago and Morris Halfon, and the owner of a chain of drug stores where many of the allegedly bogus prescriptions were filled.