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Medicare Fraud Busted in Dallas

DALLAS (CN) - Beltline Medical Supplies submitted more than $1 million in false Medicare claims, and its owner pleaded guilty to federal charges of aggravated identity theft. Rafayel Movsesyan, 38, of Los Angeles, opened Beltline in Dallas in 2007.

Movsesyan's fraudulent Medicare claims, primarily for orthotic braces and supplies, falsely represented that the items had been prescribed and provided to Medicare beneficiaries in several states.

"In reality, no items were ever ordered or provided," the Department of Justice said in a written statement. "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 use of the names and Medicare numbers of patients and physicians led to the charges of aggravated identity theft. Medicare paid Beltline Medical more than $325,000 as a result of Movsesyan's fraudulent claims.

He faces a statutory penalty of 2 years in prison and a $250,000 fine. A sentencing date will be set by U.S. District Court Judge David Godbey.

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