Burbank Resident Sentenced for Medicare Fraud and Tax Evasion
A Burbank resident received a 51-month federal prison sentence for evading over $11.2 million in federal taxes and unlawfully collecting Medicare reimbursements through his blood-testing company. Armen Muradyan, aged 60, was also ordered by United States District Judge John A. Kronstadt to recompense $15,158,033. Muradyan had previously pleaded guilty to charges of healthcare fraud, wire fraud, and tax evasion conspiracy.
Muradyan operated Genex Laboratories Inc., a blood-testing laboratory based in Burbank. Medicare reimbursed Genex for millions of dollars in testing services, channeling these payments into accounts under the name of L.S., a friend of Muradyan’s. L.S. served as a nominal owner of Genex, receiving $2,000 monthly, and was instructed to submit Medicare claims due to Muradyan’s exclusion from submitting claims.
Bank accounts associated with Genex were opened in L.S.’s name but were controlled by Muradyan. Despite being the apparent owner, L.S. had no involvement in company operations. Muradyan used the financial gains from this fraud for personal expenses, including property payments and luxury items.
Tax Evasion and Financial Misconduct
From 2015 to 2023, financial activities of Genex were reported on L.S.’s tax returns, showing minimal profits to reduce tax liabilities. Muradyan omitted these activities from his tax filings, reporting an average income of $40,000, while benefiting from Medicare reimbursements. Failure to file tax returns from 2021 to 2023 led to unreported taxable income of approximately $23,915,762, with a tax liability of $11,236,356 plus interest.
Muradyan also misrepresented information in an Economic Injury Disaster Loan application, claiming false employment and income figures for GenMed, a fictitious business, to secure $99,900 from the U.S. Small Business Administration. These funds were misappropriated for personal use.
The investigation was conducted by the IRS Criminal Investigation, the FBI, and the U.S. Department of Health and Human Services Office of Inspector General. Prosecuted by Assistant United States Attorney Mark Aveis of the Major Frauds Section and Trial Attorney Mahana K. Weidler of the DOJ Tax Division, the case underscores the Department of Justice’s commitment to combating fraud through the National Fraud Enforcement Division.