Federal officials arrested eight people across Southern California and Idaho on April 2, charging them with running a series of healthcare fraud schemes that prosecutors say drained more than $50 million from Medicare and private insurance programs. The defendants include three nurses, a chiropractor, and a psychologist, and the cases range from fraudulent hospice billing to forged immigration medical documents.
First Assistant U.S. Attorney Bill Essayli announced the charges, framing the arrests as part of the Trump administration’s broader push to combat what it calls widespread fraud in Democratic-led states. Essayli made clear the administration would not tolerate criminal exploitation of taxpayer-funded healthcare programs.
Hospice fraud at the center of the sweep
Five of the eight cases involve hospice care facilities operating across Los Angeles County, in cities including Glendale, Artesia, Tarzana, and Simi Valley. Prosecutors allege the facilities submitted false claims to Medicare for patients who were not terminally ill and did not qualify for hospice services, effectively turning end-of-life care programs into revenue streams.
The largest case centers on the owner of an Artesia-based hospice company, a licensed vocational nurse, who prosecutors say submitted more than $9 million in fraudulent claims to Medicare between July 2020 and April 2025. Medicare paid out more than $8.5 million on those claims. She allegedly paid kickbacks to beneficiaries and marketers in exchange for patient referrals. One couple told authorities they were each promised $300 per month to enroll in hospice care despite not being terminally ill. They reported receiving unnecessary items including nutritional shakes, nonprescription vitamins, and wheelchairs…