Amid a nationwide crackdown on fraud led by Vice President JD Vance, five people have been arrested over alleged hospice fraud in Southern California.
The California Department of Justice and several state agencies made the arrests Wednesday, targeting ten locations suspected of facilitating hundreds of millions of dollars in fraudulent billing to Medi-Cal. In total, 21 individuals have faced criminal charges related to the scheme.
State Attorney General Rob Bonta stated that the operation defrauded California’s Medicaid program of $267 million through bogus hospice services never rendered to patients. The investigation began with an alert from the state Department of Health Care Services regarding fraud at 14 companies.
Bonta revealed that investigators found suspects purchased personal identifying information for individuals living outside California on dark web platforms, then enrolled them in Covered California by falsely claiming residency. These “straw owners” acquired hospice companies to bill Medi-Cal for services never provided, using fake records, nonexistent offices, and fraudulent diagnoses to justify the claims.
During a press conference, Bonta emphasized that the operation is being conducted solely by state authorities, not federal agencies. He also noted his office has been investigating such activities for years. The scheme prevented essential hospice care from reaching sick individuals who required it, according to Bonta.