Not again: The largest Medicare fraud scheme ever perpetrated by a single criminal enterprise


Jon Jasperson, the president of Aspirant Education ( emailed me this morning with a link to a story about how members of an "Armenian organized crime enterprise" bilked Medicare out of more than $160 million.

Just for kicks, I went up to Google and searched for Medicare Fraud. You should try this yourself. You'll find various versions of this story, plus a whole bunch of other stuff, including ads for products to "Stop Medicare Fraud."

A whole industry has grown up around committing and combating Medicare fraud. It's pathetic and disheartening to see our tax dollars wasted like this, especially with the country in the economic doldrums.

Why is CMS so helpless? Why is there no accountability? You'd think that after years of letting crooks pick the taxpayers' pockets there'd be some big shake up at CMS. Obviously, the bureaucrats who have been there for years are not getting the job done.

I bet they feel mighty lucky that they are not paid for performance.

Mike Moran


I'm glad we just received another set of several dozen Medicare audits (thousands over the years) again while a foreign based mafia organization can bilk the country out of $163 million. And we're still getting picked on for medical necessity issues on a $40 claim because the doctors notes arent clear enough! Maybe CMS (and their various alphabet agencies DME MAC, RAC, ZPIC, ASPCA...) could better utilize their limited resources and focus less on the honest guys who have been in business for ten years and barely making a living versus an international crime syndicate billing $163 million.

What I don't understand is why does the government allow these schemes do go on for 3-5 years adding to 163million dollars??? They do this why??? so they can have job security and have the biggest bust schemes ever!!! All this is making the Providers that are doing business the correct way SUFFER. All these schemes are Russian, Arminian, Nigerian ect... I have been telling Medicare and the state of CA for years that 1. Allowing NON-CITIZENS should not be allowed you should be an american citizen to be able to get a Medicare Provider number. Just recenltly they added you have to be 51% American Citizen??? 2, Everyone obtaining a Provider number should go through education classes and get a certificate that they understand Medicare Guidelines and Medical Necessity on itmes they bill.