Feds Crack Down on $50M Health Care Fraud Schemes in Southern California

Eight people arrested in crackdown on alleged fraud at hospice centers and labor union health plans

Apr. 3, 2026 at 5:18am

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An extreme close-up photograph of a medical document or prescription pad lit by a harsh, direct camera flash against a pitch-black background, conveying a stark, gritty, investigative aesthetic around the issue of health care fraud.A federal crackdown on alleged health care fraud schemes in Southern California exposes the grim realities of exploiting government benefits programs.Los Angeles Today

Federal officials have arrested eight people accused of involvement in various health care fraud schemes totaling $50 million in the Los Angeles area. The cases include hospice centers that allegedly billed Medicare for patients who did not qualify for hospice services, as well as individuals accused of defrauding a West Coast labor union's health care 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 address 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 LA for allegedly defrauding a West Coast labor union's health care plans. An additional person arrested in LA 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 U.S. Attorney and a Trump appointee, who called California the 'kingdom of fraud' during a news conference announcing the charges.

Gavin Newsom

The Governor of California, whose office said the state has already aggressively cracked down on hospice fraud, noting that he signed a law in 2021 to stop providing new hospice licenses over fraud concerns.

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 the 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

What’s next

The Centers for Medicare and Medicaid Services announced that 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 address improper spending across government benefits programs like Medicare and Medicaid, with a particular focus on Democratic-led states like California that the Trump administration alleges are not doing enough to combat fraud.