Eight Charged in $50M Southern California Health Care, Hospice Fraud Scheme

Defendants allegedly used ineligible patients to bill Medicare for hospice services not provided

Apr. 2, 2026 at 9:12pm

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An extreme close-up photograph of a stack of medical documents and prescription bottles lit by a harsh, direct camera flash against a pitch-black background, conceptually illustrating the investigation into a large-scale healthcare fraud operation.Federal authorities have charged eight individuals in a $50 million healthcare fraud scheme that exploited vulnerable patients and taxpayer-funded programs.Los Angeles Today

The U.S. Department of Justice announced the arrest and federal charges of eight individuals, including nurses, a chiropractor, and a psychologist, accused of running fraudulent hospice care facilities that billed Medicare for services to people without terminal illnesses. The defendants are charged with defrauding the health care system out of more than $50 million.

Why it matters

Hospice fraud has been a growing problem in Los Angeles County, with over 700 of the roughly 1,800 hospices in the area triggering multiple red flags for fraud. This crackdown is part of a broader effort to combat widespread healthcare fraud that costs American taxpayers hundreds of billions of dollars annually.

The details

The defendants are accused of using their hospice care facilities to submit fraudulent claims to Medicare for beneficiaries who were not terminally ill and for services that were not provided. This includes a doctor-psychologist couple who allegedly paid illegal kickbacks for patient referrals and submitted over $5.2 million in fraudulent claims, as well as a licensed vocational nurse who is accused of submitting over $9 million in fraudulent hospice claims.

  • The alleged fraud occurred from June 2022 to April 2024.
  • The defendants were arrested and charged on April 2, 2026.

The players

Bill Essayli

Acting U.S. Attorney who announced the charges against the defendants.

Gladwin and Amelou Gill

A doctor and psychologist who co-owned 626 Hospice, also known as St. Francis Palliative Care, and are accused of fraud and paying illegal kickbacks.

Lolita Beronilla Minerd

A licensed vocational nurse from Anaheim who owned and operated Topanga Hospice Care Inc. and is accused of submitting over $9 million in fraudulent hospice claims.

Nita Almuete Paddit Palma

A thrice-convicted healthcare fraudster currently incarcerated, who is accused of working with her husband Adolfo Catbagan to operate at least three fraudulent hospice care facilities.

Sonia Griffen

Charged in a five-count indictment for submitting nearly $5 million in fraudulent claims to the ILWU-PMA health care plan through her wellness company, Bee Well Holistic Wellness Center.

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What they’re saying

“The Southern California region is a high-risk environment for hospice-related and many other forms of health care fraud. The United States loses hundreds of billions of dollars annually to healthcare fraud at the expense of all American taxpayers, whose benefits decrease as premiums, co-payments and taxes grow.”

— Akil Davis, Assistant Director in Charge of the FBI's LA Field Office

“We are enforcing a zero-tolerance policy for criminals who defraud American taxpayers. The defendants arrested this morning, who are charged with stealing millions of dollars of health care benefits, got caught and now face years in federal prison.”

— Bill Essayli, Acting U.S. Attorney

What’s next

The defendants will face trial in federal court for the charges of health care fraud and conspiracy.

The takeaway

This case highlights the ongoing battle against widespread healthcare fraud that drains billions from taxpayer-funded programs like Medicare. The crackdown in Southern California is part of a broader national effort to root out these schemes and hold perpetrators accountable.