LOS ANGELES – California Attorney General Rob Bonta, together with the California Department of Health Care Services (DHCS), today announced charges filed against 21 suspects and the dismantling of a major hospice fraud scheme that defrauded California of $267 million. Operation Skip Trace resulted in the arrest of five people after ten different locations were searched in Southern California. In addition, two handguns and over $757,000 in cash were seized. 

“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,” said Attorney General Rob Bonta. “Over the life of this fraud scheme, not a single legitimate hospice service was ever provided yet millions were billed in a brazen, calculated scheme that exploited the Medi-Cal system. This wasn’t a mistake or a loophole; it was deliberate fraud. This kind of abuse undermines trust, drains critical resources, and threatens care for those who truly depend on it. This is a perfect example that we have taken a firm stand to investigate, prosecute, and shut down hospice fraud wherever it exists.”

“For years, California has led the charge to protect public programs from fraud and abuse,” said Governor Gavin Newsom. “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. I thank the Department of Health Care Services and the California DOJ’s Division of Medi-Cal Fraud and Elder Abuse for their swift work to bring these charges forward. Since these are state charges, Donald Trump cannot pardon these individuals in exchange for campaign donations.”

“Fraud is a direct attack on Medi-Cal members who rely on us for care, and we will not stand for it,” said California Department of Health Care Services Director Michelle Baass. “Our safeguards worked as designed: we identified irregularities early, stopped further improper payments, and suspended the fraudulent providers. Working closely with the California Department of Justice Division of Medi-Cal Fraud and Elder Abuse, California’s Medicaid Fraud Control Unit, we are ensuring those responsible are held fully accountable while strengthening oversight to protect Medi-Cal members and taxpayer dollars.”

“This investigation demonstrates what California can accomplish when our state agencies work together with urgency and purpose," said California Health and Human Services Secretary Kim Johnson. "Protecting the millions of Californians who depend on Medi-Cal to meet their health needs is our priority and we will not tolerate bad actors. DHCS moved swiftly to stop these payments, disenroll fraudulent accounts, and refer perpetrators for criminal prosecution. Our work is not done, and we will continue strengthening the safeguards that keep Medi-Cal sound and trustworthy for the people it was designed to serve.”

The investigation was initiated after the California Department of Justice (DOJ) received a credible allegation of fraud from DHCS. Subsequent investigative efforts uncovered a scheme where individuals purchased personal identifying information for non-California residents from the dark web and enrolled those identities in Medi-Cal through Covered California. 14 hospice companies were purchased by straw owners and the billers began billing for hospice services for the stolen identities. No hospice services were ever rendered. The total fraudulent billing is approximately $267 million. 

DOJ filed charges against 21 suspects, in three different criminal complaints. The defendants are charged with conspiracy to commit health care fraud, health care fraud, money laundering, and identity theft. In addition, there is an aggravated white collar crime enhancement and an aggravated money laundering enhancement. On Wednesday, April 8, DOJ, with the assistance of California Department of Health Care Services and the California Franchise Tax Board, executed Operation Skip trace which included the execution of search and arrest warrants at twelve separate locations throughout Southern California.

During Attorney General Bonta's tenure, DOJ conducted 294 hospice-related investigations, filed 119 hospice-related criminal cases, and secured 51 hospice-related convictions. In 2025, DOJ launched a hospice fraud initiative to empower patients, families, law enforcement, and healthcare providers with the knowledge needed to recognize and report fraudulent practices in the hospice care system. The initiative included: 

• Educational materials: Public service announcements and informational materials through billboards and radio spots across the Los Angeles area.
• Community forums and stakeholder engagement: Sessions led by DOJ Division of Medi-Cal Fraud & Elder Abuse’s legal experts to help law enforcement and healthcare professionals recognize and respond to hospice fraud. 
• Support services: A dedicated helpline and web portal for reporting suspected fraud and online resources and guides for patients and caregivers. 

Recognizing the Signs of Hospice Fraud

If you or a loved one is receiving hospice care, here are some red flags that could signal fraud:

Little or No Care Is Actually Being Provided

• The patient isn’t getting regular visits from nurses, aides, or caregivers.
• The patient is not receiving medication, nutrition, or other promised services or equipment.
• Scheduled visits are missed often or happen at odd or inconsistent times.
• The hospice team rarely checks in or is hard to reach.

The Patient Doesn’t Seem That Sick

• The patient was signed up for hospice but doesn’t appear to have a life-limiting illness.
• The person can still do most of their usual daily activities with no major changes.
• There’s no clear diagnosis explaining why hospice was recommended.

No One Explained What Hospice Really Is

• The family or patient didn’t fully understand that hospice is for end-of-life care.
• Hospice services started without a clear referral or explanation from the patient’s regular doctor. 

You Were Offered Gifts or Incentives

• Someone offered you gift cards, groceries, or cash in exchange for signing up.
• The offer felt too good to be true or came from someone you didn’t know. 

Hospice Services Are Dragging on Without Updates

• The patient has been in hospice care longer than six months with no change or discussion.
• There’s no clear plan for care, and no one is talking about the next steps.

Something Feels Off

• The staff seem rushed, unprofessional, or poorly trained.
• You’re getting bills or Medi-Cal statements for services that don’t match what’s happening.
• You or your loved one feels pressured to stay enrolled, even if it doesn’t feel right.

Tips to Protect Against Hospice Fraud:

• Know the purpose: Hospice is for terminally ill patients nearing end of life.
• Check with your doctor: Always consult the patient’s regular doctor before agreeing to hospice.
• Watch for red flags: Avoid services offered without a referral, or providers offering incentives like gift cards.
• Ask questions: Legitimate hospice providers will be transparent about services and billing.
• Verify providers: Use licensed, accredited hospice services and check reviews. 
• Understand your benefits: Know what Medi-Cal or insurance covers to spot false charges.
• Keep records: Document all care and compare with insurance statements.
• Report fraud: Speak up if anything looks suspicious and report it right away.

To report suspected hospice fraud:

• Submit a Complaint Online at https://oag.ca.gov/dmfea/reporting

• Call DOJ's Division of Medi-Cal Fraud & Elder Abuse Complaint Line Toll-free at: (800) 722-0432
• Send a Written Complaint by Mail:
  California Department of Justice
  Division of Medi-Cal Fraud Elder Abuse
  P.O. Box 944255
  Sacramento, CA 94244-2550

The Division of Medi-Cal Fraud and Elder Abuse (DMFEA) is a division in the California Department of Justice whose mission is to protect citizens and the state’s Medi-Cal program from those who defraud taxpayers and divert state health care resources. The investigation would not have been possible without the collaboration of government agencies and those who reported the incidences of Medi-Cal fraud. If you suspect Medi-Cal fraud or elder abuse, you can report the incident at https://oag.ca.gov/dmfea/reporting.

The DMFEA receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $77,652,892 for Federal Fiscal Year (FFY) 2026. The remaining 25 percent, totaling $25,884,297 for FFY 2026, is funded by the California Attorney General’s Office.  FFY 2026 is from October 1, 2025 through September 30, 2026.

It is important to note that a criminal indictment contains charges that are only allegations against a person. Every defendant is presumed innocent until proven guilty.

Here is a copy of the first complaint, second complaint, and third complaint.