Court sentences 2 to prison for $9 million hospice fraud scheme

March 29 (UPI) -- A California hospice owner and his biller were sentenced to jail time for bilking Medicare out of more than $9 million in false and fraudulent claims for hospice services.

Gayk Akhsharumov, 40, who owned two hospice companies, and Karen Sarkisyan, 45, both of Glendale, both were sentenced to one year and one day in prison for the scheme. Sarkisyan, also known as Kevin Sarkisyan, also served as Akhsharumov's consultant.

Prosecutors said Akhsharumov was the manager and beneficial owner of San Gabriel Hospice and Palliative Care Inc., and Broadway Hospice Care. Investigators said he hid his ownership of the facilities from Medicare, put in false owners and paid kickbacks to patient recruiters. Sarkisyan submitted the false applications.

On March 23, 2023, Akhsharumov entered a guilty plea to conspiracy to commit healthcare fraud and Sarkisyan pleaded guilty to conspiracy to defraud the United States on April 3, 2023.

Authorities said even after closing one of his facilities, he filled out an application for COVID-19 relief funds from the Paycheck Protection Program and received funds. Prosecutors said Akhsharumov received $50,000 from the relief plan even though the hospice was not in operation

Akhsharumov was ordered to pay $9.18 million in restitution while Sarkisyan was ordered to pay back $3.68 million in restitution.