Federal Crackdown Nets 8 Arrests in Southern California Health Care Fraud Schemes

Alleged $50 million in fraudulent hospice, union, and immigration medical claims

Apr. 3, 2026 at 1:10pm

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

Federal officials have arrested 8 people in the Los Angeles area for their alleged involvement in various health care fraud schemes totaling $50 million. The cases include fraudulent billing for hospice services, defrauding a labor union's health plans, and forging immigration medical documents.

Why it matters

The Trump administration has made California, and the Los Angeles area in particular, a focus of its national anti-fraud efforts, alleging the Democratic-led state is failing to crack down on improper spending. This crackdown is part of a broader federal push to combat health care fraud across the country.

The details

Five of the cases involved hospice-care centers in Glendale, Artesia, Tarzana and Simi Valley that allegedly billed Medicare for patients who were not terminally ill and did not qualify for hospice services. One person was arrested in Idaho and another in Los Angeles for allegedly defrauding a West Coast labor union's health care plans. An additional person arrested in Los Angeles was accused of forging immigration medical documents.

  • The arrests were made on Thursday, April 3, 2026.
  • In January 2026, Dr. Mehmet Oz claimed that federal officials 'took out' 221 hospices in the last 10 weeks.

The players

Bill Essayli

First Assistant US Attorney, a Trump appointee who called California the 'kingdom of fraud' during the news conference.

Gavin Newsom

Governor of California, whose office said the state has already aggressively cracked down on hospice fraud, revoking more than 280 hospice licenses in two years and having 300 providers under investigation.

Donald Trump

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

Mehmet Oz

The Centers for Medicare and Medicaid Services (CMS) administrator who said federal officials 'took out' 221 hospices in the last 10 weeks and that CMS will 'review every single hospice in California.'

Artesia-based hospice center owner

Submitted more than $9 million in fraudulent hospice claims to Medicare, of which more than $8.5 million was paid out.

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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 US 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, CMS Administrator

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 combat improper spending across government benefits programs like Medicare and Medicaid, with a particular focus on Democratic-led states like California.