Hospice Fraud in Los Angeles

FBI arrests eight in alleged $60 million hospice fraud crackdown across Los Angeles County

"Federal agents fanned out across Southern California on Thursday, arresting eight people and executing search warrants in what prosecutors called "Operation Never Say Die", a sprawling takedown targeting an alleged $60 million hospice-related fraud scheme that siphoned taxpayer money through Medicare and Medicaid for patients who, in some cases, were recruited in grocery store parking lots.

First Assistant U.S. Attorney Bill Essayli announced the operation during a news conference, saying charges would be brought against 15 individuals across greater Los Angeles County. The alleged schemes ranged from bogus hospice businesses registered to empty lots to convicted felons who were barred by law from running health care operations but did it anyway, using family members as fronts, The Center Square reported.

The arrests mark the latest federal enforcement action in a state that has become ground zero for health care fraud. And the political fallout is already underway, with California Republican lawmakers demanding to know how the schemes flourished for years under Gov. Gavin Newsom's watch while his press office scrambled to take credit for a 2021 moratorium on new hospice licenses."

Read more about the fraud

Thanks to Nick Shirley for his investigative reporting that brought this to light.