United States Attorney James T. Jacks
Northern District of Texas

FRIDAY, DECEMBER 4, 2009
http://www.usdoj.gov/usao/txn/

DURABLE MEDICAL EQUIPMENT (DME) BUSINESS OWNER IN DALLAS
PLEADS GUILTY TO AGGRAVATED ID THEFT IN MEDICARE FRAUD SCHEME

DALLAS — The owner of Beltline Medical Supplies, Inc., formerly in Dallas, Texas, pleaded guilty to an Information charging aggravated identity theft, announced U.S. Attorney James T. Jacks of the Northern District of Texas. According to plea documents filed in the case, Rafayel Movsesyan, 38, a resident of Los Angeles, California, opened Beltline Medical Supplies, Inc. in Dallas in 2007 and submitted more than $1,028,000 in false claims to the Medicare program. He faces a statutory penalty of two years in prison and a $250,000 fine. A sentencing date will be set by U.S. District Court Judge David Godbey.

Documents filed in the case reveal that Movsesyan’s fraudulent Medicare claims, primarily for orthotic braces and supplies, falsely represented that the items had been prescribed and provided to the Medicare beneficiaries located in Ohio, California, South Texas, Florida, and other states. In reality, no items were ever ordered or provided. Additionally, Movsesyan’s claims falsely stated that multiple physicians had examined such beneficiaries and ordered these items, when in fact, the patients and physicians were wholly unknown to each other and no examinations had ever occurred. Movsesyan’s unlawful use of the names and Medicare numbers of patients and physicians led to the charges of aggravated identity theft. Medicare issued payments to Beltline Medical totaling more than $325,000 as a result of Movsesyan’s fraudulent claims.

U.S. Attorney Jacks praised the excellent investigative work of the U.S. Department of Health and Human Services - Office of the Inspector General.

The case is being prosecuted by Assistant U.S. Attorneys Katherine Miller and Sean McKenna.

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