LOS ANGELES — A massive fraud operation targeting California’s Medicaid system has resulted in criminal charges against 21 individuals accused of stealing more than $267 million through fake hospice billing schemes, state officials announced Thursday.
California Attorney General Rob Bonta revealed that authorities have taken five suspects into custody so far in connection with the elaborate scam, which comes as federal officials intensify their nationwide crackdown on healthcare fraud.
The investigation began after the Department of Health Care Services alerted state prosecutors to suspicious activity. Authorities discovered that the accused fraudsters had purchased stolen personal information from dark web sources, targeting residents from other states to illegally register them for Medi-Cal benefits — California’s version of the federal Medicaid program that serves low-income residents.
Using these fraudulent enrollments, the suspects established 14 separate hospice care businesses and submitted false claims totaling approximately $267 million for services that were never provided, according to Bonta’s office.
“This isn’t a political game for us. This is about protecting taxpayer dollars, protecting the programs that sick and vulnerable Californians rely on, and protecting our state,” Bonta stated in an official announcement.
The defendants face multiple felony charges including conspiracy to commit healthcare fraud, healthcare fraud, money laundering, and identity theft, with additional penalties for aggravated white-collar crimes and money laundering.
California Governor Gavin Newsom emphasized the state’s commitment to prosecuting such crimes. “For years, California has led the charge to protect public programs from fraud and abuse,” Newsom said in the announcement. “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.”
Since taking office, Attorney General Bonta’s administration has pursued 119 criminal cases related to hospice fraud and obtained 51 convictions, his office reported.
The charges come during heightened federal scrutiny of healthcare fraud, particularly in Democratic-led states. The Trump administration has made California a primary target of its anti-fraud initiatives, with particular focus on Medicare hospice fraud in the Los Angeles region. President Trump established an anti-fraud task force in March through executive order, placing Vice President JD Vance in charge of the effort.
Federal authorities arrested eight additional suspects last week in separate healthcare fraud cases throughout the Los Angeles area, demonstrating the scope of fraudulent activity officials are working to combat. While the federal crackdown has primarily focused on states with Democratic leadership, Republican-controlled Florida has also been asked to provide detailed information about its fraud detection and prevention methods.
