FBI Arrests 8 in Alleged $50M Healthcare Fraud Scheme

Six defendants expected to appear in LA court, one in Idaho

Apr. 6, 2026 at 8:11pm

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An extreme close-up of crumpled medical bills and insurance documents, dramatically lit by a harsh flash against a dark background, conceptually representing the gritty investigation into a major healthcare fraud case.A harsh flash illuminates the paper trail of an alleged $50 million healthcare fraud scheme, exposing the human cost of such criminal activity.Los Angeles Today

The FBI has arrested eight people allegedly involved in a healthcare fraud scheme in Los Angeles, the Department of Justice announced. Three nurses, a chiropractor, and a psychologist were arrested for trying to defraud the U.S. healthcare system out of over $50 million, including by creating a hospice in someone's daughter's name and swindling over $7 million from taxpayers.

Why it matters

Healthcare fraud is a major issue, with the U.S. losing hundreds of billions annually. This case highlights the problem of fraud in the hospice industry specifically, which has been a growing concern in Los Angeles where an estimated 700 out of 1,800 hospices have red flags for fraud.

The details

According to the DOJ, six of the defendants are expected to make their initial court appearances in Los Angeles, while one is expected to appear in Idaho. The alleged scheme involved trying to defraud the healthcare system out of over $50 million. Two of the defendants, Gladwin and Amelou Gill, are accused of creating a hospice in their daughter's name and swindling over $7 million from taxpayers.

  • The FBI arrests were announced last week by the Department of Justice.
  • Last month, CBS News released an exclusive report into fraud in hospice centers in Los Angeles.

The players

Gladwin and Amelou Gill

Two of the defendants accused of creating a hospice in their daughter's name and swindling over $7 million from taxpayers.

Rob Bonta

The California Attorney General who has said more needs to be done to address hospice fraud, stating that the state needs to be responsive to red flags and not just count them.

Akil Davis

The Assistant Director in Charge of the FBI's Los Angeles Field Office, who said Southern California is high-risk for Hospice fraud.

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What they’re saying

“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 Los Angeles Field Office

“We need to be responsive to the red flags and react to them, not just count them. Our main lane is the accountability side, the criminal investigations, the civil investigations. That's after the damage is done though, unfortunately.”

— Rob Bonta, California Attorney General

What’s next

The eight defendants are expected to make their initial court appearances in the coming days, where the judge will decide on bail and other pre-trial matters.

The takeaway

This case highlights the ongoing problem of healthcare fraud, which costs the U.S. hundreds of billions annually. It also shines a light on the specific issue of fraud in the hospice industry, which has been a growing concern in Los Angeles. Addressing this type of fraud will require a multi-pronged approach of increased oversight, criminal investigations, and civil accountability.