Women from California admit guilt in a $16 million hospice fraud and money laundering scandal, according to the Department of Justice.
In a significant development, two residents of Winnetka, California, Karpis Srapyan, 35, and Susanna Harutyunyan, 39, have admitted to defrauding Medicare of almost $16 million. The case, which involves "sham hospice companies," is part of a growing trend of Medicare fraud that has become a recognised problem in the United States.
According to the U.S. Department of Justice, Srapyan and Harutyunyan, along with two other California residents, Petros Fichidzhyan and Juan Carlos Esparza, conspired to bill Medicare for hospice services not provided. Harutyunyan, who also faces deportation, was aware of her husband's and a co-defendant's involvement in illegal activities with Srapyan and Fichidzhyan.
The scheme, which the Department of Justice described as a multi-year one, also involved laundering the proceeds of the fraud. The federal district court will determine the sentences for Srapyan and Harutyunyan, which will consider the U.S. Sentencing Guidelines and other statutory factors. Srapyan faces a maximum penalty of 20 years in prison, while Harutyunyan faces a maximum of 10 years.
The sentencing for Srapyan is scheduled for Oct. 6, and Harutyunyan's is set for Nov. 17.
This case is not an isolated incident. In July 2025, two women in California were accused of defrauding Medicare of nearly $16 million, and in June 2025, three Houston-area women were accused of defrauding the government out of $87 million in Medicare and Medicaid funds by enrolling ineligible individuals in hospice care.
The U.S. government loses an estimated $60 billion annually due to fraud, mistakes, and abuse in Medicare, including but not limited to hospice schemes. To combat this, the Department of Justice regularly conducts nationwide health care fraud takedowns, such as a recent operation that resulted in charges against 324 defendants for over $14.6 billion in alleged fraud, with a subset involving Medicare and Medicare Advantage plans.
The Centers for Medicare and Medicaid Services (CMS) has also increased scrutiny of new hospices in high-risk states and continues to review claims prior to payment to combat fraudulent activities.
While exact statistics on the prevalence of Medicare fraud specifically through sham hospice companies are not available, multiple recent indictments and guilty pleas—alongside ongoing federal and state enforcement—indicate that such fraud is a significant and persistent issue within the broader context of healthcare fraud in the U.S.
[1] Source: U.S. Department of Justice press release, date unknown [2] Source: Houston Chronicle, June 2025 [3] Source: Centers for Medicare and Medicaid Services, 2025 [4] Source: U.S. Department of Justice press release, date unknown
In this developing story, the business activities of Karpis Srapyan, Susanna Harutyunyan, and others in California involve not only finance and general-news-worthy Medicare fraud but also crime-and-justice aspects, such as illegal activities, conspiracy, and potential imprisonment. The U.S. government's efforts to combat Medicare fraud, including the DOJ's health care fraud takedowns and the Centers for Medicare and Medicaid Services' increased scrutiny, underscore the broader issue of healthcare fraud in the United States.
