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Owner of Los Angeles Medical Supply Company Sentenced to 5 Years in Federal Prison for Multimillion-Dollar Medicare Fraud Scheme

Posted by Fay Arfa | Oct 10, 2016 | 0 Comments

LOS ANGELES– A West Los Angeles man who was the owner of a medical supply company has been sentenced to five years in federal prison for his role in a scheme that fraudulently billed more than $4 million to Medicare.

Valery Bogomolny, 44, of Westwood, was sentenced yesterday by United States District Judge S. James Otero, who also ordered the defendant to pay $1,266,860 in restitution.

The sentencing of Bogomolny was announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division; United States Attorney Eileen M. Decker; Assistant Director in Charge Deirdre L. Fike of the FBI's Los Angeles Field Office; and Special Agent in Charge Christian Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Los Angeles Region.

Bogomolny was found guilty by a federal jury in November 2015 of six counts of health care fraud. According to evidence presented at trial, between January 2006 and October 2009, Bogomolny used his company, Royal Medical Supply in the Beverly Grove district of Los Angeles, to bill Medicare $4 million for power wheelchairs, back braces and knee braces that were medically unnecessary, not provided to beneficiaries or both.

The evidence further showed that Bogomolny created false documentation to support his false billing claims, including creating fake reports of home assessments that never occurred. Power wheelchairs were delivered to beneficiaries who were able to walk without assistance. In other cases, Bogomolny signed documents stating that he had delivered equipment when, in fact, the equipment was not actually delivered.

“Royal Medical Supply was a complete fraud,” said United States Attorney Eileen M. Decker. “Many purported patients lived over 100 miles away from the storefront, most of the prescriptions were issued under the names of doctors either associated with or the victims of fraud, and most of the patients never received the equipment paid for by Medicare. Mr. Bogomolny supervised this scheme victimizing U.S. taxpayers, warranting this significant sentence.”

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office of the Central District of California. DOJ Fraud Section Trial Attorneys Ritesh Srivastava and Claire Yan prosecuted the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, which now operates in nine cities across the country, has charged over 2,900 defendants who collectively have billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

USAO – California, Central Updated October 6, 2016

Central District of California DOJ / 16-241 / October 6, 2016

About the Author

Fay Arfa

Fay Arfa has the distinction of being Certified as a Specialist in two separate areas of law – Criminal Law as well as Appellate Law – by the California State Bar, Board of Specialization. The National Board of Trial Advocacy has also awarded her a board Certification in Criminal Trial Advocacy. ...


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