Feds Bust Massive SoCal Healthcare Fraud Scheme

Dozens of doctors and nurses arrested in crackdown on fraudulent hospice care

Apr. 4, 2026 at 4:04pm

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Federal authorities announced a major healthcare fraud takedown across Southern California, resulting in the arrest of eight people and charges against more than a dozen others. The scheme involved recruiting patients who were not terminally ill to pose as hospice care recipients, with Medicare paying out over $4 million in fraudulent claims.

Why it matters

This case highlights ongoing concerns about fraud and abuse within the healthcare system, particularly in the hospice care industry. It also raises questions about oversight and enforcement efforts to combat these types of schemes, which can have significant financial and patient impact.

The details

The U.S. Department of Justice, FBI, and Centers for Medicare and Medicaid Services led the investigation, which uncovered a network of fraudulent hospice providers across Los Angeles County. Authorities said the defendants recruited beneficiaries who were not actually terminally ill, then billed Medicare for millions in false hospice care claims. One Covina couple, psychologist Gladwin Gill and his nurse wife Amelou Gill, were arrested for operating a fraudulent hospice business that submitted over $5.2 million in bogus claims.

  • The federal crackdown was announced on Thursday, April 4, 2026.
  • Authorities said they served search and arrest warrants throughout the region, from Covina to Lakewood in Los Angeles County.

The players

Bill Essayli

First Assistant U.S. Attorney who led the press conference announcing the healthcare fraud takedown.

Dr. Mehmet Oz

Head of the Centers for Medicare and Medicaid Services who participated in the announcement and pledged to review all California hospice providers.

Gladwin Gill

A 66-year-old psychologist arrested for operating a fraudulent hospice business out of Glendale.

Amelou Gill

The wife of Gladwin Gill, a registered nurse who was also arrested for their role in the fraudulent hospice scheme.

Gavin Newsom

The Governor of California who responded to accusations that the state had not done enough to address hospice fraud.

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What they’re saying

“These defendants recruited beneficiaries who were not terminally ill, and paid them to pose as patients receiving hospice care. Medicare then paid millions of dollars – hundreds of millions of dollars – on false and fraudulent claims submitted by fraudsters.”

— Bill Essayli, First Assistant U.S. Attorney

“We're going to review every single hospice in California to make sure that they're all appropriate, and we hope to do that expeditiously. We'll do it this year.”

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

“The Trump Administration – home to the biggest fraudsters on Earth – is trying to blame California for issues with THEIR federal programs.”

— Gavin Newsom, Governor of California

What’s next

Authorities said they will continue their review of all hospice providers in California to root out additional fraud and abuse within the system.

The takeaway

This case underscores the need for stronger oversight and enforcement to combat widespread healthcare fraud, which can have serious financial and patient care implications. It also highlights ongoing tensions between state and federal officials over responsibility for addressing these issues.