More than 73 Armenian Americans were charged for running a $163 million scam to defraud the country’s federal medical insurance.

The scammers used bogus clinics and used stolen identities to make false claims for treatment.

According to investigators, more than $35 million was already paid out.

Medicare scam over their attempt to defraud the US officials have charged 73 people over what is thought to be the largest ever attempt to defraud the country's medical insurance system.

The gang, made mostly made up of Armenians, is charged for setting up some 118 clinics across the US, most of which existed only on paper or were "nothing more than shams, shells, and storefronts", said US Attorney Preet Bharar.

"It puts an end to the largest Medicare fraud ever committed by a single criminal enterprise," said FBI Assistant Director Janice Fedarcyk .

"There were no real medical clinics behind the fraudulent billings, just stolen doctors' identities,”Fedarcyk added.

The gang was also accused of carrying out "a raft of rackets, extortion, credit card fraud, identity theft, immigration fraud, and even the distribution of contraband cigarettes and stolen Viagra,” Bharar added.

The gangsters were arrested during raids in New York City and Los Angeles, Miami and Atlanta on Wednesday morning.

According to officials, the funds generated by the scam were couriered back to Armenia in cash.

The arrested gangsters face up to life imprisonment or a minimum of three years in prison if convicted.