Seventeen-Count Indictment Unsealed Charging Four with Medicare Fraud Conspiracy

United States Attorney Laura E. Duffy announced that a 17-count indictment was unsealed today that charges four individuals in a Medicare billing fraud conspiracy. The indictment relates to the alleged operation of, and fraudulent billing at, a medical office clinic that paid kickbacks to recruiters or “cappers” to bring in patients. The clinic was located on El Cajon Boulevard in San Diego. The defendants are Karen Kagramanian of Glendale, California and Daniel Baiandourian, Stanley Garrido and Corazon Ferrer of San Diego.

The indictment alleges that Kagramanian and Baiandourian were the cofounders of a store-front medical office clinic that submitted false and fraudulent claims to Medicare. The indictment further alleges that defendants offered and paid kickbacks to cappers for bringing Medicare beneficiaries to the clinic. The defendants, in turn, are alleged to have filed fraudulent claims with Medicare for medical services not rendered and medically unnecessary. Stanley Garrido, a physician’s assistant, is charged with ordering the medically unnecessary tests and procedures and falsely holding himself out as a medical doctor to individuals at the clinic. Corazon Ferrer is charged as the lead recruiter for the clinic who received money and passed a portion of the money along to other cappers who, in turn, recruited individuals to come to the clinic.

This case is being investigated by special agents with the FBI and the Department of Health and Human Services Office of Inspector General. The indictment was unsealed earlier today during the initial appearances of two of the defendants. A motion hearing/trial setting has been set for September 7, 2010 before United States District Judge Roger T. Benitez.

Criminal Case No. 10CR2742-BEN
DEFENDANTS:
Karen Kagramanian
Daniel Baiandourian
Stanley Garrido
Corazon Ferrer

SUMMARY OF CHARGES:
Count 1: Title 18, United States Code, Section 1349 – Health Care Fraud Conspiracy Maximum Penalties: 10 years of imprisonment and $250,000 fine (all defendants)

Counts 2 through 14: Title 18, United States Code, Section 1347 – Health Care Fraud Maximum Penalties: 10 years of imprisonment and $250,000 fine per count (all defendants)

Counts 15 through 17: Title 42, United States Code, Section 1320(a)-7(b)(2)(A) – Kickbacks Maximum Penalties: Five years of imprisonment and $25,000 fine per count (Counts 15 and 16 name only Corazon Ferrer) and (Count 17 names only Daniel Baiandourian)

PARTICIPATING AGENCIES:
Federal Bureau of Investigation Department of Health and Human Services-Office of Inspector General

An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.