California Man Sentenced to 12 Years for $17 Million Medicare Hospice Fraud Scheme.
A California man has been sentenced to 12 years in federal prison after admitting to running a years-long scheme that defrauded Medicare out of more than $17 million through sham hospice companies and a home health care business.
Petros Fichidzhyan, 44, of Granada Hills, was sentenced in federal court to 12 years in prison. He was also ordered to serve three years of supervised release and pay over $17 million in restitution.
A Web of Fraud and Stolen Identities
According to prosecutors, Petros Fichidzhyan masterminded a complex operation that exploited Medicare’s billing system by creating hospice companies that existed only on paper.
He and his co-conspirators used the stolen identities of foreign nationals to pose as business owners and submitted fake documentation to Medicare.
The fraudsters also stole the names and personal identifying information of several physicians, including two who were deceased to falsely certify patients for hospice care.
In reality, many of the services billed to Medicare were either medically unnecessary or never provided at all.
Millions Pocketed and Laundered
Medicare ultimately paid out nearly $16 million to the bogus hospices. Fichidzhyan personally pocketed close to $7 million, investigators said.
To hide the proceeds, he laundered more than $5.3 million through a network of shell companies and third-party bank accounts.
The fraud didn’t stop at hospice services. Fichidzhyan also used a home health care agency he controlled to submit more than $1 million in false Medicare claims, again relying on stolen physician credentials.
When one doctor discovered that their information was being used fraudulently, Fichidzhyan allegedly tried to cover his tracks by offering the doctor an $11,000 payoff.
A Growing Pattern of Hospice Fraud in California
Fichidzhyan’s case is just one example of a broader problem federal authorities have been battling for years. Southern California, particularly the Los Angeles area, has become a national hotspot for hospice fraud schemes.
In recent years, numerous operators have exploited regulatory loopholes to create so-called “pop-up” hospices – businesses set up quickly to bill Medicare, often without providing legitimate care.
A 2023 report by the Department of Health and Human Services Office of Inspector General (HHS-OIG) revealed that California has one of the highest concentrations of suspicious hospice providers in the country.
Investigators found that some companies were billing for patients who were not terminally ill or were unaware they had been enrolled in hospice care at all.
The Los Angeles Times and other outlets have also documented how some hospice operators recruit vulnerable patients, particularly elderly immigrants with promises of free care or financial incentives, then fraudulently bill Medicare on their behalf.
In February, Fichidzhyan pleaded guilty to multiple charges, including health care fraud, aggravated identity theft, and money laundering.
As part of his sentence, the court ordered the forfeiture of a house purchased with fraudulent funds. Authorities also seized nearly $3 million from bank accounts linked to the scheme.
A Broader Crackdown on Hospice Fraud
Federal officials say this case is part of an ongoing crackdown on hospice-related Medicare fraud. The FBI and HHS-OIG led the investigation, with support from the Justice Department’s Criminal Division.
“Schemes like this not only defraud taxpayers but also undermine the integrity of the entire Medicare system.” an FBI spokesperson said.
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