Doctors convicted in Medicare fraud scam

Doctors signed off on bogus exams, gave kickbacks to elderly patients

Three physicians are convicted on charges of aiding in a $3.1 million Medicare fraud scam by signing off on a catalog of diagnostic tests that patients didn’t need or didn’t receive.

Three physicians were convicted on federal charges that they aided in a $3.1 million Medicare fraud scam at three Houston clinics by signing off on a catalog of specialized diagnostic tests that patients didn’t need or didn’t receive.

After two weeks of testimony and two full days of deliberation on Tuesday, the jury before U.S. District Judge Lynn N. Hughes convicted the three doctors of approving the bogus exams for elderly and disabled patients, who got cash kickbacks and free rides to the clinics to report vague aches and pains.

The verdict came just days after the U.S. Department of Justice announced indictments of 301 people in what federal officials described as the largest Medicare fraud “takedown” in history.

The three physicians maintained their innocence, saying they were duped by the clinic owner and did not realize the operation was a scam.

Prosecutors said the physicians knowingly and willingly participated.

Giam Nguyen, 46, a Houston internist, was convicted of conspiracy, four counts of engaging in unlawful monetary transactions and 43 counts of health care fraud.

Benjamin Seth Martinez, 35, a Dallas anesthesiologist, and Donovan Simmons, 43, an Austin family care doctor, were each convicted of conspiracy, 43 counts of health care fraud and two counts of engaging in unlawful transactions.

Martinez and Simmons traveled periodically to Houston to review patient files.

Medical technician Anna Bagoumian, 43, was also convicted of conspiracy and 35 counts of health care fraud.

Witnesses testified that the clinics billed Medicare for hundreds of costly exams, including electrocardiograms, anal sphincter tests and arterial Doppler tests, between September 2008 and May 2010. The clinics operated out of three strip malls around Houston.

The three doctors were hired by Zaven “Mike” Pogosyan, 38, of Glendale, Calif., who pleaded guilty to several dozen federal charges, admitting he orchestrated the fraud scheme and put all the players in place to pull it off.

He admitted he rented office space and furnished it with medical equipment, potted plants and even art for the walls, and brought in clinic staff.

The clinic owner also hired recruiters to round up elderly and disabled patients who had Medicare cards, at places where they congregated, including a local McDonald’s near the downtown bus station.

One recruiter, Frank “Bones” Montgomery, 66, pleaded guilty and testified at trial he had transported people to the clinics and paid them $50 or $100 cash, a cut of his own kickback from the clinics’ owners.

The physicians, however, were key to the scheme because their signatures were needed to obtain reimbursement from the Medicare system.

The judge set sentencing for Oct. 3.