Van Nuys Building Linked to Suspected Hospice Fraud

Dozens of hospices registered at single address draw scrutiny amid national crackdown

Mar. 15, 2026 at 1:50pm

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A Van Nuys office building with 89 hospices registered to it has been pulled into a national fight over suspected hospice fraud. Records show about 40 of the hospices registered to 14545 Friar St. billed Medicare for more than $38 million in 2023, raising concerns about potential fraud. The building and the proliferation of hospices in Van Nuys are now under investigation as Republicans look to criticize California's governor ahead of a potential 2028 presidential run.

Why it matters

The case highlights growing concerns about hospice fraud in California, which has become a flashpoint in recent months as Republicans seek to replicate a similar strategy employed in Minnesota where potentially billions of dollars in widespread fraud have been uncovered in social service programs. Legitimate hospice providers are getting caught in the crossfire as authorities crack down on suspected fraud.

The details

Records show about 40 of the 89 hospices registered to the Friar Street building in Van Nuys billed Medicare for more than $38 million in 2023, or about $28,000 per patient. That same year, the U.S. Department of Health and Human Services Office of Inspector General estimated hospice fraud topped $198.1 million nationwide. The building's owner says tenant occupancy can fluctuate over time, and he performs background checks and verifies licenses but doesn't track what tenants do. Some legitimate hospice providers at the building have had Medicare payments frozen and are demanding answers as they risk not being able to pay rent.

  • In 2023, about 40 hospices registered to the Friar Street building billed Medicare for more than $38 million.
  • In 2023, the U.S. Department of Health and Human Services Office of Inspector General estimated hospice fraud topped $198.1 million nationwide.

The players

Kambiz Merabi

The owner of the Friar Street building in Van Nuys.

Gavin Newsom

The governor of California, who is facing criticism from Republicans over the state's handling of hospice fraud.

Dr. Mehmet Oz

The head of the Centers for Medicare and Medicaid Services, who visited Los Angeles in February and posted a viral video calling out the number of hospices in Van Nuys and fraud-related convictions made in the past year.

Alexandra Macedo

A California state Assemblymember, R-Tulare, who announced she had uncovered 197 hospice agencies registered at the Friar Street building in Van Nuys.

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What they’re saying

“Unfortunately, the circulation of unverified statements or assumptions regarding the property has had a negative impact on our business operations and reputation.”

— Kambiz Merabi, Building owner (Southern California News Group)

“A lot of people are leaving the building. They're saying so many things and it is all lies and BS.”

— Kambiz Merabi, Building owner (Southern California News Group)

“We're providing the services, but we're not getting paid. We don't know what to do, and next month, if there are no payments, we cannot pay rent.”

— Hospice administrator (Southern California News Group)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.