Attorney General Bonta Busts $267M Los Angeles Hospice Fraud Ring; 21 Charged

California Attorney General Rob Bonta has announced significant developments regarding a massive hospice fraud operation linked to a shocking $267 million in fraudulent claims. Collaborating with the California Department of Health Care Services (DHCS), Bonta detailed the arrests of 21 suspects involved in this deceptive scheme.

Overview of the Fraud Scheme

The operation, named “Skip Trace,” led to the investigation of multiple locations across Southern California. A total of five individuals were arrested during the operation, which included searches at ten sites. Authorities seized two handguns and over $757,000 in cash as part of the operation.

Details of the Charges

The charges against the suspects involve serious offenses including conspiracy to commit healthcare fraud, healthcare fraud, money laundering, and identity theft. Furthermore, an aggravated white-collar crime enhancement has been applied, reflecting the severity of the scheme.

Fraudulent Activities Uncovered

The investigation began following credible allegations of fraud. It revealed that individuals were purchasing personal identifying information from the dark web to falsely enroll non-residents in Medi-Cal. This operation involved 14 hospice companies, which were acquired by straw owners who then billed for services that were never provided.

Impact and Response from Officials

Attorney General Bonta emphasized the importance of safeguarding taxpayer dollars and public trust. “This kind of abuse undermines trust and drains critical resources,” he stated. Both Governor Gavin Newsom and California DHCS Director Michelle Baass echoed his sentiments, committing to combating fraud within the healthcare system.

Baass noted that the department’s safeguards had worked effectively, as they identified irregularities early, stopped improper payments, and suspended fraudulent providers. Kim Johnson, Secretary of California Health and Human Services, reinforced the commitment to strengthening oversight and ensuring accountability.

Hospital Fraud Initiative

Since 2025, the Department of Justice has implemented a hospice fraud initiative aimed at educating patients and families about fraudulent practices. This initiative features:

• Public service announcements and materials across the Los Angeles area.
• Community forums led by DOJ experts to equip law enforcement and healthcare professionals.
• A dedicated helpline and online resources for reporting suspected fraud.

Identifying Hospice Fraud

Patients and families are urged to recognize the signs of hospice fraud. Some key indicators include:

• Minimal care or services not being provided.
• Patients showing little indication of a life-limiting illness.
• Lack of clear explanations about hospice services.
• Offers of incentives for signing up for hospice care.
• Unexplained billing discrepancies.

Protecting Against Fraud

To guard against hospice fraud, individuals should:

• Understand that hospice care is for terminally ill patients.
• Consult with regular doctors before enrolling in hospice services.
• Be wary of unsolicited offers and verify the legitimacy of providers.
• Document care and compare statements with insurance records.
• Report any suspicious activities immediately.

Reporting Suspected Fraud

Anyone suspecting hospice or Medi-Cal fraud can report incidents to the California Department of Justice. They offer a complaint hotline and a written complaint option:

• Call the DOJ’s Division of Medi-Cal Fraud & Elder Abuse at (800) 722-0432.
• Send complaints to the California Department of Justice, P.O. Box 944255, Sacramento, CA 94244-2550.

This case illustrates the success of collaborative efforts among government agencies to address and mitigate fraud in the healthcare system, ensuring that resources are protected for those in need.