California Man Pleads Guilty to Money Laundering Medicare Hospice Fraud Scheme

In a significant victory for the Department of Justice’s crackdown on hospice-related Medicare fraud, Mihran Panosyan, 46, of Winnetka, California, has pleaded guilty to laundering over $4.6 million linked to a sprawling $16 million healthcare fraud scheme that exploited the hospice system.

According to federal prosecutors, Panosyan was instrumental in a three-part operation that manipulated Medicare by submitting false claims for hospice care. Alongside co-defendants, Panosyan facilitated the creation and operation of sham hospice companies by using the stolen identities of foreign nationals who were no longer in the United States. These identities were used to open and operate fraudulent bank accounts, credit cards, and corporate entities.

The fraudulent scheme centred on billing Medicare for hospice services that were never rendered to patients who were not terminally ill, and in many cases, who were unaware they had been enrolled in end-of-life care programmes. This led to nearly $16 million in improper payouts from Medicare.

Panosyan’s role involved laundering the illicit proceeds to conceal their origin and enable personal enrichment. Prosecutors detailed how he moved the funds through layers of bank accounts held in the names of the sham companies and fictitious owners. The laundered money was used to acquire real estate, cover private school tuition for his child, and fund other luxury expenses.

Having pleaded guilty to money laundering, Panosyan now awaits sentencing, scheduled for 8 September. He faces up to 20 years in federal prison. The final sentence will be determined by a federal judge, who will weigh statutory considerations and the US Sentencing Guidelines.

This guilty plea is part of a broader federal effort to dismantle fraudulent hospice operations in the greater Los Angeles area. Panosyan’s co-defendant, Petros Fichidzhyan, was previously sentenced to 12 years for related charges, including aggravated identity theft. The remaining three defendants are expected to face trial beginning 29 July.

The case was investigated by the FBI’s Los Angeles Field Office and the Department of Health and Human Services Office of Inspector General (HHS-OIG). It is being prosecuted by the Justice Department’s Health Care Fraud Strike Force, a specialised unit that has charged over 5,800 defendants since its inception in 2007, targeting fraud schemes responsible for more than $30 billion in false claims.

Read the press release here.