A Burbank blood-testing laboratory proprietor who used Medicare repayment cash to strengthen a playing addiction, pay private bills and evade tens of millions in taxes has been sentenced to greater than 4 years in federal jail.
Armen Muradyan, 60, from California, was once ordered to serve 51 months in the back of bars by means of U.S. District Pass judgement on John A. Kronstadt. The court docket additionally directed him to pay $15.16 million in restitution.
Muradyan pleaded guilty in August 2025 to conspiracy to devote well being care fraud, cord fraud and tax evasion. Federal prosecutors stated his behavior concerned a long-running effort to hide his position in a laboratory trade, download Medicare bills and conceal source of revenue from tax government.
Court docket hears how Burbank laboratory proprietor devised scheme to fund playing addiction
In line with court docket information, Muradyan owned and operated Genex Laboratories Inc., a blood-testing laboratory in Burbank. After Medicare barred him from filing claims, prosecutors stated he organized for an established pal recognized as “L.S.” in court docket paperwork to seem as the corporate’s proprietor.
Authorities said the transfer allowed Medicare repayment bills to stay flowing whilst covering Muradyan’s involvement. Court docket information display that Medicare deposited greater than $23 million into financial institution accounts opened in L.S.’s title however managed by means of Muradyan.
Prosecutors stated Muradyan agreed to pay L.S. $2,000 each and every month in trade for serving because the laboratory’s proprietor on paper. He allegedly instructed his pal that Medicare enrollment bureaucracy needed to be filed beneath L.S.’s title as a result of Muradyan was once prohibited from submitting claims himself.
Despite the fact that L.S. was once indexed as the landlord, investigators stated he didn’t in reality run the corporate. As an alternative, he reportedly got here to the Burbank administrative center to gather per thirty days bills and sometimes signed paperwork at Muradyan’s route whilst Muradyan remained in control of the trade.
Federal prosecutors stated Muradyan spent proceeds from the fraud scheme on private duties, together with loan bills, playing and different bills.
The federal government additionally stated the association supported a tax evasion scheme that lasted from 2015 via 2023. All through that length, Muradyan recommended L.S. to file Genex monetary job on private tax returns the usage of summaries that falsely steered the corporate earned little benefit or operated at a loss.
This was once then supplied to L.S.’s tax preparer, who ready returns the usage of the ideas equipped by means of Muradyan, in step with prosecutors.
Government additionally stated Muradyan filed private tax returns that overlooked Genex monetary job and reported reasonable annual source of revenue of about $40,000 regardless of receiving and spending tens of millions generated by means of the laboratory. He additionally did not report tax returns from 2021 via 2023.
Prosecutors stated he hid kind of $23.9 million in taxable source of revenue, leading to greater than $11.2 million in unpaid federal taxes. Court docket information additional state that California suffered about $2.7 million in tax losses.
The case additionally integrated a fraudulent Economic Injury Disaster Loan application submitted in July 2020 on behalf of an entity known as GenMed. Prosecutors stated Muradyan falsely claimed the trade had staff and generated $800,000 in earnings throughout 2019. The Small Trade Management licensed a $99,900 mortgage, and government stated the cash was once later spent on private bills now not allowed beneath this system.
IRS Criminal Investigation, the FBI and the Division of Well being and Human Services and products Place of job of Inspector Common investigated the case. Prosecutors from the U.S. Legal professional’s Place of job and the Division of Justice treated the prosecution.
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