Officer Emily Pelayo trains members of the Safeguard Palm Beach Youth Academy for Palm Beach in using handcuffs at the South Fire Station June 10, 2025 in Palm Beach. Twenty participants attended the two day program hosted by Safeguard, a division of Palm Beach Police and Fire Foundation
Burbank, California – A Burbank man admitted in court this week that he spent years dodging taxes, defrauding Medicare, and even taking advantage of pandemic relief programs designed to keep small businesses afloat.
Armen Muradyan, 60, pleaded guilty Thursday to conspiracy to commit health care fraud, wire fraud, and tax evasion. Federal prosecutors said Muradyan’s schemes brought in millions of dollars, much of it siphoned from Medicare, all while he claimed on paper to be earning little more than $40,000 a year.
At the center of the case is Muradyan’s blood-testing business, Genex Laboratories Inc., which operated out of Burbank. Medicare paid millions in reimbursements to the company, but because Muradyan had been banned from submitting claims directly, he arranged for a longtime friend — identified in court records as “L.S.” — to serve as a stand-in owner. In exchange for $2,000 a month, L.S. opened bank accounts, signed paperwork, and allowed his name to be used on Genex’s enrollment forms. In reality, prosecutors said, Muradyan maintained full control of the business and the money.
The arrangement was designed to shield Muradyan from scrutiny, but it also allowed him to live lavishly while evading his tax obligations. Between 2015 and 2020, Muradyan directed L.S. to file tax returns that showed Genex operating at minimal profit or even a loss. Meanwhile, Muradyan filed his own returns reporting only modest personal income. He also failed to file any returns from 2021 through 2023. In total, the Justice Department said Muradyan concealed nearly $24 million in income, leaving more than $11.2 million in unpaid taxes.
The fraud extended beyond Medicare. In July 2020, as the pandemic shuttered businesses across the country, Muradyan applied for a taxpayer-funded Economic Injury Disaster Loan through the Small Business Administration. On the application, he falsely claimed that another company he controlled, GenMed, had employees and earned $800,000 the year prior. In truth, GenMed had neither workers nor revenue. The SBA approved the loan and wired him $99,900 — money that was supposed to help keep employees on payroll. Instead, Muradyan used it for personal expenses.
The case underscores how loopholes and falsified paperwork can allow individuals to siphon millions from programs meant to serve patients and struggling businesses. Federal investigators say Muradyan’s deception stretched on for years and was built on a mix of personal relationships, shell paperwork, and brazen misreporting to the IRS.
Muradyan will be sentenced on December 11. He faces up to 20 years in prison for the wire fraud charge, 10 years for health care fraud, and five years for tax evasion. For now, he remains free on a $2.6 million bond.
