A Burbank man, Armen Muradyan, 60, was sentenced today to 51 months in federal prison for evading over $11.2 million in federal taxes by using a shill to collect Medicare payments for his blood-testing company and fraudulently obtaining nearly $100,000 in COVID-19 business relief. United States District Judge John A. Kronstadt also ordered Muradyan to pay $15,158,033 in restitution.
Muradyan, who pleaded guilty in August 2025 to conspiracy to commit health care fraud, wire fraud, and tax evasion, owned and operated Genex Laboratories Inc. Medicare reimbursements, totaling millions, were wired to bank accounts in the name of a long-time friend, identified as "L.S.," whom Muradyan paid $2,000 monthly to pose as Genex's owner. Muradyan had been banned from submitting Medicare claims himself.
Muradyan controlled these bank accounts and instructed L.S. to report Genex's financial activity on L.S.'s personal tax returns, falsely indicating minimal profit or losses for the company from 2015 through 2023. During this period, Muradyan reported an average income of $40,000 annually, despite personally receiving and using millions in Medicare funds for his mortgage, gambling, and personal expenses. He also failed to file tax returns for 2021 through 2023, resulting in approximately $23,915,762 in unreported taxable income and $11,236,356 in federal income tax due.
Additionally, in July 2020, Muradyan submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL) for an entity called GenMed, falsely claiming it employed multiple people and generated $800,000 in 2019. The U.S. Small Business Administration wired $99,900 to an account Muradyan controlled, which he used for unpermitted personal expenses.
The case was investigated by IRS Criminal Investigation, the FBI, and the United States Department of Health and Human Services Office of Inspector General. This prosecution aligns with the Department of Justice's new National Fraud Enforcement Division and President Trump’s Task Force to Eliminate Fraud, aimed at combating fraud against the American people.