How One California Man Helped Orchestrate a $16 Million Medicare Scam
In a case that highlights the dark side of healthcare fraud, a man from Valley Village, California, has admitted to playing a major role in a long-running scam that bilked nearly $16 million from Medicare.
The scheme revolved around fake hospice businesses—places that were supposed to provide end-of-life care, but in reality, were nothing more than a front.
How the Scheme Was Set Up
From mid-2019 until early 2023, 33-year-old Juan Carlos Esparza and his co-conspirators, including Petros Fichidzhyan and Karpis Srapyan, set up four sham hospices.
One of them, House of Angels Hospice, was owned by Esparza himself.
The others were officially under the names of foreign nationals—but in reality, Esparza and his group controlled everything behind the scenes.
The team used fake identities to open bank accounts, sign leases, and submit information to Medicare.
They even registered cell phones under those false identities to help carry out the scheme.
These hospices billed Medicare for services that were never medically necessary—or, in many cases, never provided at all.
Cleaning the Money and Covering Their Tracks
Once the money rolled in, the group needed to make it look legitimate.
Esparza and the others—including two more defendants, Susanna Harutyunyan and Mihran Panosyan—laundered the proceeds through various bank accounts and shell companies.
They stashed fake IDs and documents tied to the scam at House of Angels’ office and two residential homes.
They spread the money around, using it to make it harder to trace.
Esparza even spent $90,000 of the fraud money on a personal vehicle.
What Happens Now?
Esparza has pleaded guilty to charges of health care fraud and transactional money laundering.
His sentencing is set for October 6, and he could face up to 10 years in prison for each charge.
The case doesn’t stop with him. Co-defendant Petros Fichidzhyan has already been sentenced to 12 years after pleading guilty to multiple charges, including identity theft.
Mihran Panosyan pleaded guilty last month and will be sentenced in September.
Karpis Srapyan and Susanna Harutyunyan also pleaded guilty and will be sentenced in the fall—Harutyunyan may face deportation.
A Bigger Crackdown on Hospice Fraud
This is just one of many recent efforts by the Justice Department to crack down on hospice fraud, particularly in the greater Los Angeles area.
Last year alone, a doctor was convicted for billing Medicare for unnecessary hospice services, and two other individuals were sentenced for similar crimes.
The investigation was led by the FBI and the Department of Health and Human Services’ Office of Inspector General.
The Justice Department’s Health Care Fraud Strike Force, which has been active since 2007, continues to lead the fight against these scams.
So far, they’ve charged more than 5,800 defendants with fraud totaling over $30 billion.
Fraud with a Human Cost
While this case involves staggering amounts of money, the deeper issue lies in the abuse of a system meant to provide compassionate care to those in their final days.
Fraud like this doesn’t just drain taxpayer dollars—it damages trust in the healthcare system and leaves a lasting impact on real patients and families.