According to a statement by California Attorney General Rob Bonta, he and the California Department of Health Care Services today announced charges filed against 21 suspects and the dismantling of a major hospice fraud scheme that defrauded California of $267 million.
Operation Skip Trace resulted in the arrest of five people after 10 different locations were searched in Southern California. In addition, two handguns and more than $757,000 in cash were seized.
“This isn’t a political game for us,” Bonta said. “This is about protecting taxpayer dollars, protecting the programs that sick and vulnerable Californians rely on, and protecting our state. Over the life of this fraud scheme, not a single legitimate hospice service was ever provided, yet millions were billed in a brazen, calculated scheme that exploited the Medi-Cal system. This wasn’t a mistake or a loophole; it was deliberate fraud. This kind of abuse undermines trust, drains critical resources and threatens care for those who truly depend on it. This is a perfect example that we have taken a firm stand to investigate, prosecute, and shut down hospice fraud wherever it exists.”
“For years, California has led the charge to protect public programs from fraud and abuse,” said Governor Gavin Newsom. “We hold accountable to the fullest extent of the law anyone who tries to rip off taxpayers and take advantage of public programs, particularly those as sensitive as hospice care. I thank the Department of Health Care Services and the California DOJ’s Division of Medi-Cal Fraud and Elder Abuse for their swift work to bring these charges forward. Since these are state charges, Donald Trump cannot pardon these individuals in exchange for campaign donations.”
“Fraud is a direct attack on Medi-Cal members who rely on us for care, and we will not stand for it,” said California Department of Health Care Services Director Michelle Baass. “Our safeguards worked as designed: we identified irregularities early, stopped further improper payments, and suspended the fraudulent providers. Working closely with the California Department of Justice Division of Medi-Cal Fraud and Elder Abuse, California’s Medicaid Fraud Control Unit, we are ensuring those responsible are held fully accountable while strengthening oversight to protect Medi-Cal members and taxpayer dollars.”
“This investigation demonstrates what California can accomplish when our state agencies work together with urgency and purpose,” said California Health and Human Services Secretary Kim Johnson. “Protecting the millions of Californians who depend on Medi-Cal to meet their health needs is our priority and we will not tolerate bad actors. DHCS moved swiftly to stop these payments, disenroll fraudulent accounts, and refer perpetrators for criminal prosecution. Our work is not done, and we will continue strengthening the safeguards that keep Medi-Cal sound and trustworthy for the people it was designed to serve.”
The investigation was initiated after the California Department of Justice received a credible allegation of fraud from DHCS…