Federal authorities have arrested multiple health care providers across Southern California in a sweeping crackdown on alleged Medicare and Medicaid fraud totaling $60 million.
The investigation, labeled “Operation Never Say Die,” focused on hospice care businesses accused of exploiting vulnerable patients to submit fraudulent claims.
Eight individuals were taken into custody Thursday, while authorities have filed charges against 15 people tied to the scheme.
First Assistant U.S. Attorney Bill Essayli highlighted the coordinated effort, noting that agents from several federal agencies executed arrests and search warrants across the region.
Investigators outlined numerous schemes in which patient identities were used to submit false claims.
In one instance, a couple reportedly received monthly payments from a hospice operator in exchange for allowing their names to appear on Medicare forms.
Over a five-year span, claims submitted under their names generated roughly $8.5 million in reimbursements.
Another case involved a previously convicted couple barred from opening a hospice.
They allegedly registered a facility under a relative’s name, collecting more than $4 million in Medicare payments while discharging an unusually high proportion of patients, far exceeding national norms for terminal care.
A third case included operators already serving prison sentences who continued submitting fraudulent claims totaling nearly $5 million.
“This is not just a fraud problem—it’s a California problem,” Essayli said, pointing to weak oversight and regulatory enforcement that allowed these schemes to flourish. “The system lacks proper vetting and accountability, and vulnerable patients pay the price.”
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz commended federal efforts, emphasizing the importance of enforcement in protecting taxpayers and patients.
“These law enforcement leaders and these brave men and women that I was able to witness this morning go after these criminals are doing God’s work,” Oz said at a press conference, according to The Center Square.
“And they’re going to be able to do it more effectively because there’s been a demand made by the president and vice president of an all-of-government effort.”
State lawmakers also voiced concern over systemic weaknesses.
Assemblymember Alexandra Macedo (R-Tulare) highlighted hundreds of hospice businesses registered to vacant lots or abandoned buildings, suggesting a broader network of exploitation.
“But there is very clearly somebody teaching them how to do this, or, in my opinion, a puppet master, so finding out who these people are attached to will come out with time,” Macedo told the outlet.
Experts warn that Southern California has become a hotspot for health care fraud due to lax regulatory frameworks and oversight gaps.
Estimates suggest that Medicare fraud in Los Angeles County alone may exceed $3.5 billion, underscoring the scale of taxpayer exposure.
State Sen. Tony Strickland (R-Huntington Beach) called for more aggressive enforcement and accountability for those responsible.
Federal officials indicated that the crackdown extends beyond hospice care.
Investigations also target fraudulent claims submitted to private health plans and improper reimbursements linked to immigration-related programs.
Supporters of the prosecutions stress that these actions demonstrate a commitment to defending vulnerable populations and preserving the integrity of government programs.
Critics, meanwhile, continue to question how such widespread fraud could persist under current regulatory frameworks.
As authorities pursue these cases, federal officials and lawmakers alike emphasize that oversight failures in California demand immediate reform.
“Millions in taxpayer dollars were siphoned off while patients were put at risk,” Strickland said. “This is a wake-up call for real accountability and systemic change.”
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