Sgr A* is thought to be the radiative manifestation of a 3.6x10E6 Msun supermassive black hole at the Galactic center. Its mm/sub-mm spectrum and its flare emission at IR and X-ray wavelengths may be produced within the inner ten Schwarzschild radii of a hot, magnetized Keplerian flow. The lightcurve produced in this region may exhibit quasi-periodic variability. We present ray-tracing simulations to determine the general-relativistically modulated X-ray luminosity expected from plasma coupled magnetically to the rest of the disk as it spirals inwards below the innermost stable circular orbit towards the ``stress edge" in the case of a Schwarzschild metric. The resulting lightcurve exhibits a modulation similar to that observed during a recent X-ray flare from Sgr A*.