Largest Medicare Scam Ever Busted, Dozens Arrested

October 14, 2010

New York (ChattahBox Crime News) – The largest ever Medicare scam by a single syndicate has been busted, as an Armenian gang allegedly stole $163 million through fake medical claims.

Setting up phantom clinics all over the country, the gangs attached them to rented mailboxes and made medicals claims. In reality, they were being thought up in a small office above an auto repair shop.They included such ridiculous things as a OBGYN charging for allergy tests, and pathologists doing in-clinic visits with “patients”, the NY Post reports.

Of the 73 arrested for a huge number of charges, both related and unrelated to the scam, the biggest bust was of Armen Kazarian. The Armenian crime boss is the first “vor” (top leader of the syndicate) to be arrested for racketeering in the U.S.

The other charges against the many defendants are threatening extortion victims with death or injury, hiring strippers to make false car insurance claims and money laundering.


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