Mark Twain is often credited with saying, “A gold mine is a hole in the ground with a liar standing in front of it.” While he may have been referring to the prevalence of fraud in the American mining industry during the 19th century, the statement still has relevance today when it comes to all types of fraud. On October 16, 2024, Sophia Shaklian and Alex Alexsanian were arrested and charged with allegedly attempting to defraud Medicare out of more than $54 million by submitting phony claims for hospice and diagnostic testing services. Afterwards they then allegedly laundered the illegal funds by buying millions of dollars’ worth of gold coins and bars.
Shaklian managed seven health care providers that were enrolled with Medicare. These businesses included a hospice company she owned and several diagnostic testing companies. From March 2019 to August 2024, she allegedly submitted claims for services never provided and not needed. Simultaneously, Alexsanian had allegedly convinced the owners of Saint Gorge Radiology and Console Hospice to submit fraudulent claims to Medicare for services they too did not provide. Their alleged actions resulted in more than $23 million in fraudulent payments from Medicare, which they allegedly transferred to a bank account in the name of “Varsenic Babaian” — fake identity that they purportedly created to launder the fraudulently gained proceeds. The allegations indicate that Shaklian and Alexsanian then went on to buy more than $6 million in gold bars and coins…where they maybe thought to bury it in the ground?
Shout out to the Department of Health and Human Services in this case.
Today’s Fraud of The Day is based on article “California man, woman bought gold bars to launder money in $54 million Medicare fraud” published by USA Today on October 19, 2024.
A Southern California man and woman are accused of defrauding Medicare out of more than $54 million by submitting phony claims for hospice and diagnostic testing services, and laundering the illegal funds by buying millions of dollars worth of gold coins and bars, federal authorities said.
Sophia Shaklian, 36, of Los Angeles, and Alex Alexsanian, 47, of Burbank, were arrested on Wednesday on a 24-count federal grand jury indictment, according to a Justice Department news release. Shaklian is charged with 16 counts of healthcare fraud and four counts of transactional money laundering, while Alexsanian is facing one count of conspiracy to launder monetary instruments and three counts of concealment money laundering, federal prosecutors said.