A Burbank man is now facing serious legal consequences after admitting to a series of tax and health care-related crimes that spanned nearly a decade.
Armen Muradyan, who ran a blood testing company, has pleaded guilty in federal court to multiple charges, including tax evasion, wire fraud, and conspiracy to commit health care fraud.
Running a Lab Through a Nominee
Court documents reveal that from 2015 to 2023, Muradyan operated Genex Laboratories, a blood testing lab, while using a nominee to pose as the company’s owner.
This nominee was listed as the owner on paper but had no real control over the business.
Muradyan managed every aspect of the company behind the scenes.
The nominee also held Genex’s bank accounts, which received more than $23 million in Medicare reimbursements.
Muradyan provided annual financial summaries to the nominee that suggested the lab owed little or no taxes, instructing the nominee to report these numbers on their personal tax returns.
The nominee’s tax preparer, relying on these falsified documents, filed returns that greatly misrepresented the company’s finances.
Meanwhile, Muradyan submitted his own federal tax returns without reporting any of Genex’s income or the millions he personally withdrew from the company for his own expenses.
Altogether, Muradyan’s actions allegedly caused a tax loss of over $8.5 million to the IRS and around $2.7 million to the state of California.
COVID-19 Loan Fraud
Muradyan’s legal troubles didn’t stop with tax fraud.
In 2020, he applied for a COVID-19 Economic Injury Disaster Loan (EIDL) under false pretenses.
The EIDL program was designed to help struggling small businesses, offering loans of up to $150,000 to cover six months of working capital.
Muradyan claimed the loan on behalf of a fake company, asserting it had employees and earned nearly $1 million in 2019.
In reality, the company had no employees and no such income.
The fraudulent application resulted in Muradyan receiving nearly $100,000, which he used for personal expenses—clearly a violation of the program’s rules.
Charges and Potential Sentencing
Muradyan has pleaded guilty to conspiracy to commit health care fraud, wire fraud, and tax evasion.
He is scheduled for sentencing on December 11. The potential penalties are steep:
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Up to 20 years for wire fraud
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Up to 10 years for conspiracy to commit health care fraud
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Up to five years for tax evasion
Additionally, Muradyan could face supervised release, restitution, and other monetary penalties.
A federal judge will determine the final sentence after reviewing the U.S. Sentencing Guidelines and other legal factors.
Investigations and Prosecution
This case has been investigated by the IRS Criminal Investigation, the FBI, and the Department of Health and Human Services, Office of Inspector General.
The prosecution team includes Trial Attorney Mahana Weidler from the Justice Department’s Tax Division and Assistant U.S. Attorney Mark Aveis from the Central District of California.
