Federal Officials Arrest Eight in Major Health Care Fraud Case
Federal authorities have arrested eight individuals for their alleged involvement in a series of health care fraud schemes that are estimated to have cost over $50 million in and around Los Angeles. The arrests were announced by the U.S. Attorney’s Office, which detailed multiple cases involving hospice-care centers across several cities in the Los Angeles area.
Hospice Fraud Cases in Los Angeles Area
Five of the cases involved hospice-care centers located in Glendale, Artesia, Tarzana, and Simi Valley. According to the U.S. Attorney’s Office, these facilities allegedly billed Medicare for patients who were not terminally ill and did not meet the criteria for hospice services. This type of fraud involves misrepresenting the medical needs of patients to receive government-funded care, which is intended for those with a terminal illness.
In addition to these cases, one individual was arrested in Idaho and another in Los Angeles for allegedly defrauding a West Coast labor union’s health care plans. Another person arrested in Los Angeles was accused of forging immigration medical documents, further highlighting the diverse nature of the fraud schemes uncovered.
Political Tensions Over Fraud Enforcement
The Trump administration has targeted California, particularly the Los Angeles area, as part of its national anti-fraud initiatives. Officials have claimed that the state, which is led by Democrats, has not done enough to prevent improper spending. First Assistant U.S. Attorney Bill Essayli, a Trump appointee, referred to California as the “kingdom of fraud” during a news conference announcing the charges.
However, Governor Gavin Newsom’s office has countered these claims by stating that the state has been actively working to combat hospice fraud. In 2021, Newsom signed a law to halt the issuance of new hospice licenses due to concerns over fraudulent activities. The office also mentioned that more than 280 hospice licenses have been revoked in two years, with 300 providers currently under investigation.
“Glad the federal government is finally stepping up to do their part,” Newsom wrote on social media, responding to the recent arrests.
National Anti-Fraud Efforts
The federal government has emphasized the need to address fraud across various benefit programs, including Medicare and Medicaid. President Donald Trump signed an executive order in March to establish an anti-fraud task force led by Vice President JD Vance. This task force met for the first time last week, focusing on identifying and preventing fraudulent activities.
While most of the efforts have concentrated on states governed by Democrats, Republican-led Florida was among those asked to provide more information on how they detect and address Medicaid fraud.
“We are enforcing a zero-tolerance policy for criminals who defraud American taxpayers,” Essayli stated in a statement announcing the California charges.
New Measures to Combat Fraud
Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services (CMS), claimed during a news conference that 221 hospices had been taken out in the last 10 weeks. However, CMS did not immediately respond to requests for more details about this claim. The agency is responsible for certifying hospice providers to ensure they meet the standards for accepting patients on government-subsidized health insurance.
Oz also announced plans to introduce a new, publicly available hospice scoring system that uses care metrics to identify potentially illegitimate facilities. This initiative aims to enhance transparency and accountability within the hospice industry.
Allegations of Racially Motivated Claims
Earlier this year, Oz posted a video on social media in front of an Armenian bakery in Los Angeles, alleging that approximately $3.5 billion in hospice and home care fraud had occurred in the city. He claimed that “quite a bit of it” was run by the “Russian Armenian mafia.” This led to a civil rights complaint from Newsom’s office, which criticized Oz for making “baseless and racially charged allegations.”
Major Medicare Fraud Case
One of the largest Medicare fraud cases announced on Thursday involved an Artesia-based hospice center. The owner submitted over $9 million in fraudulent hospice claims to Medicare and was paid approximately $8.5 million. Prosecutors revealed that the owner paid beneficiaries and marketers to refer patients, even if they did not require hospice care.
A couple reportedly received $300 per month each for signing up for hospice care, despite not needing it. They also received unnecessary items such as nutritional shakes, nonprescription vitamins, and wheelchairs.
Another individual charged in a new hospice fraud case is currently serving federal prison time in Seattle after being convicted in a previous hospice fraud case in December 2024. Her husband was arrested as a co-defendant on Thursday morning.
Ongoing Investigations
Authorities also announced charges against a Los Angeles nurse who used a hospice center in Tarzana to submit over $3.8 million in claims, of which Medicare paid approximately $3.4 million. She has not yet been arrested, and court dates have not been set. It is also unclear whether any of those arrested have legal representation.
