{"id":127220,"date":"2026-04-09T15:17:39","date_gmt":"2026-04-09T19:17:39","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/five-arrested-in-alleged-267m-hospice-fraud-scheme-that-exploited-californias-medi-cal-system-127220"},"modified":"2026-04-09T15:17:39","modified_gmt":"2026-04-09T19:17:39","slug":"five-arrested-in-alleged-267m-hospice-fraud-scheme-that-exploited-californias-medi-cal-system","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/five-arrested-in-alleged-267m-hospice-fraud-scheme-that-exploited-californias-medi-cal-system-127220","title":{"rendered":"Five arrested in alleged $267M hospice fraud scheme that exploited California’s Medi-Cal system"},"content":{"rendered":"
\n

Five people have been arrested as part of an alleged multi-million dollar hospice fraud scheme<\/span> in California, officials said Thursday.<\/p>\n

California Attorney General Rob Bonta said the ring defrauded the state of more than $267 million through fraudulent billing to Medi-Cal, the state-administered Medicaid program. In total, 21 people have been charged.<\/p>\n

The arrests were part of a state investigation dubbed “Operation Skip Trace,” which targeted locations in Southern California<\/a>.<\/p>\n

“This criminal scheme, this criminal operation, was no accident,” Bonta told reporters at a news conference to announce the arrests. “It wasn’t a case of billing errors, cutting corners, or up-charging care. This was a brazen, calculated criminal scheme that exploited the Medi-Cal system, stole from the State of California<\/span> and Medicaid, and prevented services and care from going to sick individuals who actually need it.”<\/p>\n

The probe began with a tip from the state Department of Health Care Services alleging hospice fraud at 14 companies. Bonta’s office investigated the companies and eight people suspected of money laundering.<\/p>\n

HOUSE COMMITTEE LAUNCHES INVESTIGATION INTO ‘RAMPANT’ CALIFORNIA HOSPICE FRAUD<\/span><\/strong><\/p>\n

Investigators found that those involved purchased personal identifying information for people living outside of California on the dark web, then enrolled them in Covered California by posing as California residents.<\/p>\n

“Straw owners” then bought a number of hospice companies and began billing Medi-Cal for services never provided to those stolen identities<\/a>. The suspects used fake records, nonexistent offices, and fraudulent diagnoses to justify these claims, Bonta said.<\/p>\n

“Meanwhile, the so-called patients were healthy, out-of-state, and completely unaware that they had been enrolled in hospice care,” he said.<\/p>\n

\u2018WE’RE COMING AFTER YOU’: DR. OZ REVOKES MEDICARE ACCESS FOR LA DOCTOR TIED TO $71M HOSPICE BILLING<\/span><\/strong><\/p>\n

California Health and Human Services Secretary Kim Johnson said the DHCS halted payments and suspended all fraudulent hospice providers<\/span>. “There is a moratorium currently in place through January 2027 for new licensed providers,” Johnson noted.<\/p>\n

“Once the money was paid out, it was funneled through a complex web of over 130 shell companies and hidden across bank accounts, payment apps, and cryptocurrency to evade detection,” Bonta added. “The money was laundered<\/span>.”<\/p>\n

No actual medical services were provided, Bonta noted. He said all 21 suspects are accounted for through arrest, active warrants, or notices to appear before a judge. While announcing the suspected fraud, Bonta also criticized the Trump administration<\/span> amid its claims of rampant fraud in California.<\/p>\n

CLICK HERE TO DOWNLOAD THE FOX NEWS APP<\/span><\/strong><\/p>\n

“There are those in this federal administration<\/span> who can only see things through a political lens and want to politically weaponize [this],” he said. “And they love to go after the fourth-largest economy in the world, the greatest state in the nation, the great state of California.”<\/p>\n

California has been at the center of fraud concerns in recent weeks and has been called out by the federal anti-fraud task force<\/span> led by JD Vance<\/span>. Last week, eight people were arrested as part of a federal sweep tied to an alleged $60 million fraudulent Medicare billing scheme, Fox 11 Los Angeles reported.<\/p>\n<\/div>\n

Source – https:\/\/www.foxnews.com\/us\/five-arrested-alleged-267m-hospice-fraud-scheme-exploited-californias-medi-cal-system <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Five people have been arrested as part of an alleged multi-million dollar hospice fraud scheme in California, officials said Thursday. 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