The strike forces can identify potential fraud cases for investigation and prosecution quickly through real-time analysis of billing data from Medicare Program Safeguard Contractors and claims data extracted from the Health Care Information System. In phase two, prosecutors, agents and analysts from federal law enforcement and government agencies are analyzing claims data to determine unusual billing patterns to identify possible fraudulent activity. Based on identified irregular patterns, the strike force investigates individuals and/or companies that may be involved in submitting false claims to the Medicare program.

Medicare Part B covers physician's services and outpatient care, including beneficiary access to durable medical equipment (DME) such as orthotic devices, motorized wheelchairs, hospital beds, air mattresses and trapeze bars. The Medicare program pays reimbursement on claims made by providers for DME and related medications only if medically necessary for the beneficiary's treatment and prescribed by the beneficiary's physician. To receive payment, providers either submit claims directly to the Medicare program or through a billing company.


The work of the strike force is just one step in a multi-phase enforcement and regulatory project designed to improve the quality of the industry and reduce the potential for fraud in the DME and infusion areas. The Centers for Medicare and Medicaid Services is taking steps to increase accountability and decrease the presence of fraudulent providers, resulting in better service to beneficiaries and savings of billions of dollars that might otherwise go to fraudulent businesses.

On May 8, 2008, federal agents executed four search warrants, two seizure warrants and arrested ten people in the first round of arrests resulting from phase two of the Medicare Fraud Task Force. Defendants taken into custody in today's sweep were arrested for submitting false claims to the Medicare program for wheelchairs, orthotics and other DME that was medically unnecessary and/or not provided to the beneficiaries identified in claims. All defendants arrested today were owners and operators of medical supply companies in the Los Angeles area.

In one example, David Gabrielyan and Marina Nazarova, owners of U.S. Medtrade Co. Inc. were paid more than $1.5 million by the Medicare program for approximately $2 million worth of claims they falsely filed during a 13-month period. In another case of medical supply company fraud, Jesus Zamarripa, owner of Edward Medical Supply Inc. received more than $1.1 million in claimed payments from the Medicare program in only ten months. Defendants Usik Kirakosian and Petros Odachyan claimed nearly $3 million in durable medical supplies for beneficiaries who neither needed nor received the equipment, resulting in payments of more than $1.2 million during the 16-month scheme.

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