Federal Crackdown Leads to 8 Arrests in Southern California Health Care Fraud Schemes

Alleged $50 million in fraudulent claims across hospice centers and labor union plans

Apr. 3, 2026 at 3:33am

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An extreme close-up photograph of a medical clipboard with a pen and prescription pad, lit by a harsh, direct camera flash against a pitch-black background, conceptually representing the investigation into fraudulent health care billing practices.A federal crackdown on alleged health care fraud schemes in Southern California exposes the dark underbelly of improper billing practices.Los Angeles Today

Federal authorities have arrested eight individuals accused of orchestrating various health care fraud schemes totaling $50 million in the Los Angeles area. The cases involve hospice centers that allegedly billed Medicare for patients who did not qualify for services, as well as fraud against a West Coast labor union's health plans and forged immigration medical documents.

Why it matters

The Trump administration has made combating health care fraud, particularly in California, a priority. This crackdown is part of a broader federal effort to root out improper spending across government benefits programs like Medicare and Medicaid, with a focus on Democratic-led states.

The details

The alleged schemes include five cases involving hospice centers in Glendale, Artesia, Tarzana and Simi Valley that billed Medicare for patients who were not terminally ill. One person was arrested in Idaho and another in Los Angeles for defrauding a West Coast labor union's health plans, while an additional person in Los Angeles was accused of forging immigration medical documents.

  • The arrests were made on Thursday, April 3, 2026.

The players

Bill Essayli

First Assistant U.S. Attorney and a Trump appointee who called California the 'kingdom of fraud' during a news conference.

Gavin Newsom

The governor of California, whose office said the state has already taken aggressive action against hospice fraud, including revoking more than 280 hospice licenses in two years and having 300 providers under investigation.

Donald Trump

The former president who signed an executive order in March 2026 to create an anti-fraud task force led by Vice President JD Vance.

Mehmet Oz

The head of the Centers for Medicare and Medicaid Services, who said federal officials 'took out' 221 hospices in the last 10 weeks and that his agency will 'review every single hospice in California.'

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What they’re saying

“We are enforcing a zero-tolerance policy for criminals who defraud American taxpayers.”

— Bill Essayli, First Assistant U.S. Attorney

“Glad the federal government is finally stepping up to do their part.”

— Gavin Newsom

“We're going to review every single hospice in California.”

— Mehmet Oz, Head of the Centers for Medicare and Medicaid Services

What’s next

The Centers for Medicare and Medicaid Services announced it is proposing a new, publicly available hospice scoring system using care metrics to better identify facilities that might be illegitimate.

The takeaway

This crackdown on health care fraud in Southern California is part of a broader federal effort to root out improper spending across government benefits programs, with a particular focus on Democratic-led states like California. The arrests highlight ongoing concerns about fraud, especially in the hospice industry, and the challenges in policing these schemes.