Business, Government Legal News from throughout WVTwo Men Sentenced for Connection with Health Care Scheme

Two men charged with aiding and abetting aggravated identity theft in connection with a $4 million health care fraud scheme each were sentenced to 18 months in prison in a Dec. 1 hearing.

Arsen Bedzhanyan, 22, and Igor Shevchuk, 23, were charged using fake IDs to create bank accounts for the fraudulent Kanawha County businesses of ASC Solutions Corp., Attens Reliable Inc., KB Support Group Inc., PowerSource Support Inc. and Mega Plus Solutions Corp.

The businesses created approximately $4 million worth of fraudulent claims. The money was later prevented from being paid, however.

According to previous testimony, both men say they were coerced in participating in the scheme by a man named "Garrik," who federal prosecutors identified in the Dec. 1 sentencing as Garegin Mkhitaryan.

Both men pleaded guilty in September to aiding and abetting aggravated identity theft.

Assistant U.S. Attorneys Meredith George and Hunter Smith made a motion for substantial assistance and asked the court to reduce the two-year sentence to less than one year because of substantial cooperation with the government.

"Both defendants have been significantly useful regarding their truthfulness, reliability of testimony," George said.

Bedzhanyan's attorney Lex Coleman mentioned their cooperativeness and also informed the court of the danger both men faced because of media exposure that has crossed the world.

Shevchuk's attorney Deirdre Purdy echoed Coleman's concerns saying both men were subjected to direct and veiled threats through the process.  She also mentioned danger they could face if they are deported.

"Someone told me that anyone who applies for citizenship or asylum is considered a Russian traitor," she said. "He could face charges in Russia for being a traitor."

Aided by an interpreter, Shevchuk told Copenhaver he was sorry for his role in the incident and said he feared for his life.

"This all happened because I didn't have a choice," he said. "I was afraid for my life. I did everything to try to avoid it."

Copenhaver acknowledged the assistance both men provided to the government but reiterated the seriousness of the crime.

"You traveled from New York to Charleston to set up not one but five separate accounts and came back to correct one of them," Copenhaver explained. "You not only used fake IDs manufactured specifically for your use, but you participated in a fraud of extraordinary proportions."

As part of their plea agreements, both men testified at the trial of Sargis Tadevosyan, 42, who drove the men to Charleston to fix a problem with one of the bank accounts set up during an earlier visit.

In his cross-examination, Tadevosyan's attorney Tony Mirvis asked Shevchuk how he initially met Mkhitaryan. Aided by an interpreter, Shevchuk testified that he met Mkhitaryan through a man known only as "Jaga," who had asked Shevchuk to do "something with a bank."

After Shevchuk declined the offer, he later was approached by Mkhitaryan, who asked him if he wanted to make some money.

"The way he explained it," Shevchuk said in the trial, "it sounded legal almost. … All that would happen was that they would put our photo on an ID, and they said those people left and would not be able to open accounts. So they gave us the information."

Bedzhanyan testified he was friends with Shevchuk and had met Mkhitaryan by chance while walking around New York City.

 This is when Garrick gave the tasks of opening bank accounts with the information of other people, Bedzhanyan explained. 

However, Bedzhanyan said he later felt uncomfortable with this decision.  

"I called him and told him I was sorry but I didn't feel comfortable," he testified. "I didn't buy the story. He didn't say much but he said to meet him in person."

After meeting with Mkhitaryan, Bedzhanyan said he was told it was "too late to back out" and would either have to go through with the scheme or pay $2,500.

On the first trip to Charleston, Bedzhanyan and Shevchuk were told to open five bank accounts using the fake identifications allegedly provided by Mkhitaryan, Bedzhanyan explained.

Later, however, Bedzhanyan received a call from Mkhitaryan saying "one of the bigger accounts didn't function correctly."

"We had made a mistake when we set it up, and we were responsible to go fix it," Bedzhanyan recalled. "Igor told me he didn't want to go back. … But Garrik told me that I should talk to him because he's my friend and I didn't want anything to happen to him."

Tadevosyan was found guilty by a federal jury Nov. 3 of the two felony counts of conspiracy to commit health care fraud, wire fraud and aggravated identity theft.

Yet, Tadevosyan's attorney A. Courtenay Craig said he will appeal the jury verdict. Craig said pictures showing his client at a restaurant with a man only identified as "Garrik," or Mkhitaryan, should not have been admitted as evidence.

"We respect the verdict and the judge's ruling but even police and special agents admitted that those pictures had nothing to do with the charges, and they were taken in violation of the authorization in the warrant," Craig said.  "They're not identification documents. They're pictures."

Craig also took issue with the jury's instructions regarding the conspiracy count.

"Conspiracy to commit health care fraud and conspiracy to commit wire fraud require specific knowledge of the conspiracy," Craig said. "There was no evidence that anyone who testified was aware of a health care fraud or wire fraud."