Authorities arrested eight people accused of running a series of healthcare fraud schemes that siphoned tens of millions of dollars from Medicare and other insurance providers across Southern California, prosecutors announced April 2.
First Assistant U.S. Attorney Bill Essayli said the eight defendants — including three nurses, a chiropractor, and a psychologist — face charges in separate cases for allegedly defrauding the healthcare system of more than $50 million. Officials carried out the arrests in coordination with a federal task force created as part of President Donald Trump’s “war on fraud,” according to the U.S. Attorney’s Office.
Prosecutors allege the defendants orchestrated multiple schemes involving union health benefits and hospice care programs, using fraudulent claims and illegal kickbacks. Five cases involved hospice facilities across Los Angeles County that allegedly billed Medicare for patients who were not terminally ill and did not qualify for hospice services.
Authorities also arrested one individual in Idaho and another in the Los Angeles area for allegedly defrauding a labor union’s health plans through bogus chiropractic services. In a separate case, another Los Angeles-area suspect is accused of posing as a nurse and producing fraudulent immigration documents.
During a news conference, Essayli, appointed by Trump, criticized California’s licensing process for hospice providers, calling the state the “kingdom of fraud.” In response, California Gov. Gavin Newsom said on X that the state has already taken significant steps to combat fraud, including halting new hospice licenses in 2021, revoking more than 280 licenses over the past two years, and pursuing over 100 criminal cases.
“The Trump Administration — home to the biggest fraudsters on Earth — is trying to blame California for issues with THEIR federal programs,” Newsom said on X. “Glad to see the Feds finally taking seriously the fraud in the programs they themselves manage…only 15 months after Trump took office.”
In March, Trump signed an executive order establishing a task force led by Vice President JD Vance to investigate alleged misuse of federal funds intended for social welfare programs. The order directs the group to examine fraud claims nationwide.
At the time, Trump singled out California, claiming — without presenting evidence — that fraud levels were higher in Democratic-led states than in Republican-led states. Fraud experts previously told USA TODAY that such cases are not tied to political affiliation but instead depend on how effectively state and federal agencies coordinate enforcement.
Alleged hospice care fraud schemes
Prosecutors said the defendants in the hospice-related cases operated facilities that “bilked Medicare by using people without terminal illnesses as beneficiaries.”
“The defendants charged today allegedly turned hospice care into a cash-producing operation, resulting in more than $50 million in losses to taxpayers,” said T. March Bell, inspector general of the U.S. Department of Health and Human Services. “The magnitude of the losses underscores a deliberate abuse of the authority and trust afforded to health care providers.”
The largest case announced April 2 involved a hospice company based in Artesia, California. Prosecutors accuse its owner, a licensed vocational nurse, of submitting more than $9 million in fraudulent hospice claims to Medicare between July 2020 and April 2025, receiving over $8.5 million in payments.
Authorities allege the owner billed Medicare for hospice services for patients who were not terminally ill and paid kickbacks for patient referrals. One couple told investigators they were promised $300 per month to enroll in hospice care despite not being terminally ill and said they received unnecessary items such as nutritional shakes, non-prescription vitamins, and wheelchairs.
Other defendants include:
A psychologist and his wife, a registered nurse, accused of defrauding Medicare by paying illegal kickbacks for referrals involving patients who were not terminally ill. Prosecutors said the couple submitted more than $5.2 million in fraudulent claims and received over $4 million in payments.
Another defendant already serving a federal prison sentence in Seattle for a prior hospice fraud case. Prosecutors said her husband was arrested as a co-defendant on April 2.
A licensed vocational nurse in the Los Angeles area charged with submitting more than $3.8 million in hospice claims between January 2022 and September 2025, receiving approximately $3.4 million.
The CEO and CFO of another Los Angeles-area hospice center, whose Medicare enrollment was revoked in August 2024, are accused of forging at least one physician’s signature on Medicare documents to obtain hundreds of thousands of dollars.
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