Published on: June 1, 2026, 06:15h.
Updated on: June 1, 2026, 06:21h.
- Owner of blood lab misappropriated millions for gambling while hiding Medicare-linked revenue
- Nominal owner aided the flow of Medicare reimbursements for an extended period
- Operation led to $11.2 million in overdue tax bills, according to court documents
A laboratory owner from Southern California, who hid millions in Medicare reimbursements while indulging in extensive gambling, has been sentenced to over four years in federal imprisonment.
Armen Muradyan, age 60, of Burbank, received a 51-month sentence in a Los Angeles federal court after pleading guilty to various charges including healthcare fraud, wire fraud, and tax evasion, according to the US Attorney’s Office.
Blood Brothers
Muradyan confessed to secretly operating a blood-testing enterprise that employed a friend as a nominal owner to ensure a continuous flow of Medicare reimbursements, despite his prohibition from filing claims.
He funneled the payments into bank accounts created under his friend’s name and utilized the funds for his personal gain. According to the DOJ, he reported a meager annual income of approximately $40,000 to the IRS while extravagantly spending millions on gambling and other personal expenses.
Between 2015 and 2023, Muradyan did not declare roughly $23.9 million in taxable income, resulting in about $11.2 million in unpaid federal income taxes, alongside nearly $3.9 million in accrued interest as reported by prosecutors.
This fraudulent scheme involved an associate referred to in court documents as “L.S.” Muradyan compensated his friend approximately $2,000 monthly to masquerade as the owner of Genex Laboratories, a blood-testing enterprise located in Burbank.
Nominal ‘Owner’
According to prosecutors, L.S. completed paperwork, opened bank accounts, and submitted Medicare enrollment forms while Muradyan remained the actual owner and operator of the facility.
The friend did not manage the laboratory but simply acted as a placeholder, while Muradyan oversaw the financial operations from behind the scenes.
Additionally, Muradyan acknowledged obtaining a $99,900 Economic Injury Disaster Loan through fraudulent claims amid the COVID-19 pandemic, falsely asserting that another business, GenMed, had employees and had earned around $800,000 in revenue during 2019 when it had none.
Pleading guilty in August 2025, Judge John A. Kronstadt mandated Muradyan to pay $15.16 million in restitution in addition to the prison time.