Owner of New Orleans Healthcare Company Will Face Prison Time for $21M Scheme

Jerayr Rostamian has been sentenced by a federal court to more than three years in prison and a $25,000 fine for his role in a large-scale fraud scheme in the New Orleans metropolitan area that involved phony billing for Medicare and Medicaid, according to a report by The Times-Picayune.

Mr. Rostamian used his company, Med-Tech, to launder money as part of the scheme that allegedly netted more than $21 million. Under the scheme, "recruiters" would find patients and transport them to clinics in exchange for prescription drugs and cash. Executives for a California company, called Solo Lucky Claims Processing, also submitted phony claims for the clinics. The money was laundered through Med-Tech in overpriced purchases of equipment and repairs, prosecutors said.

The U.S. Attorney's Office said that a dozen people and six corporations were involved in the scheme, and all but one person have pleaded guilty, according to the report.  

More Articles on Healthcare Fraud:

Feds Charge 89 People Across 8 Cities in Medicare Fraud Takedown
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Cardiologist Pleads Guilty to $19M Fraud Scheme in New York, New Jersey

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