Former Owner of Los Angeles Medical Clinic Management Company Pleads Guilty to $3.2 Million Health Care Fraud Scheme

usa-dollar-bills-1431130-mThe former owner of a Los Angeles area medical clinic management company entered a guilty plea today for his role in a Medicare fraud scheme worth $3.2 million. Mihran “Mike” Meguerian pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Beverly R. O’Connell of the Central District of California.

Meguerian owned Med Serve Management, a Van Nuys-based medical clinic management company. The 37-year-old Glendale resident admitted to being involved in a health care fraud scheme between 2008 and 2009 that involved writing prescriptions for power wheelchairs and other durable medical equipment (DME) that were not medically necessary. Meguerian and fellow conspirators sold the phony prescriptions to DME companies, which then submitted false claims to Medicare. In total, DME companies that purchased phony prescriptions from Med Serve submitted $3,367,661 in false claims. Of that total, Medicare paid out $1,438,760.

According to the Justice Department, Meguerian’s sentencing is scheduled for November. The case was investigated by the Federal Bureau of Investigation and was brought as part of the Medicare Fraud Strike Force, which is now operating in nine U.S. cities and has charged nearly 2,000 defendants since 2007.