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Armenia To Cooperate In $163 Million Medicare Scam Investigation

YEREVAN, Armenia (AP) — Armenia says it will cooperate with the United States in an investigation of Armenian gangsters accused of using phantom health care clinics to try to cheat Medicare out of $163 million.

Foreign Ministry spokesman Tigran Balayan said Thursday that his nation was "sorry."

The operation was allegedly led by crime boss, Armen Kazarian, who was in custody in Los Angeles. He is known by the Soviet term "thief in law," which is the rough equivalent of a "godfather."

A top Armenian police official told The Associated Press on condition of anonymity that about 40 ethnic Armenian "thieves in law" operate in Europe, the U.S., Australia and the Middle East. The official is not authorized to speak to the press.

U.S. authorities say it is the largest fraud in program's history.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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