California Officials Charge 21 in $250M Hospice Fraud Scheme

Stolen identities used to bill Medi-Cal for services never provided

Apr. 9, 2026 at 10:56pm

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An extreme close-up photograph of a stack of medical documents and files, lit by a harsh, direct camera flash against a pitch-black background, conveying a stark, gritty, investigative mood about a major health care fraud case.A harsh, unforgiving spotlight on the documents behind a multimillion-dollar hospice fraud scheme that exploited vulnerable patients and taxpayer-funded programs.Los Angeles Today

California officials have charged 21 people and arrested 5 so far in a multimillion-dollar scheme to use stolen identities from people outside the state to bill Medi-Cal, the state's Medicaid program, for hospice services that were never provided. The individuals bought 14 hospice companies and billed a total of about $267 million before being caught.

Why it matters

This case highlights the ongoing problem of health care fraud, which costs taxpayers billions each year. It also shows how criminals are exploiting vulnerable populations, like hospice patients, to steal government funds. The crackdown by California officials is part of a broader national effort to target improper spending in federal benefit programs.

The details

Investigators discovered that individuals were buying personal information for non-California residents from the dark web, enrolling them in Medi-Cal, and then using those stolen identities to bill for hospice services that were never provided. The individuals are charged with conspiracy to commit health care fraud, health care fraud, money laundering, and identity theft.

  • On Thursday, April 9, 2026, California officials announced the charges.
  • The scheme had been ongoing for an unspecified period of time before being uncovered.

The players

Rob Bonta

California Attorney General who announced the charges.

Gavin Newsom

Governor of California who vowed to hold accountable anyone who tries to defraud public programs.

Donald Trump

Former U.S. President who signed an executive order to create an anti-fraud task force focused on Medicare and Medicaid fraud.

JD Vance

Vice President who is leading the national anti-fraud task force created by Trump's executive order.

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What they’re saying

“This isn't a political game for us. This is about protecting taxpayer dollars, protecting the programs that sick and vulnerable Californians rely on, and protecting our state.”

— Rob Bonta, California Attorney General

“For years, California has led the charge to protect public programs from fraud and abuse. We hold accountable to the fullest extent of the law anyone who tries to rip off taxpayers and take advantage of public programs, particularly those as sensitive as hospice care.”

— Gavin Newsom, Governor of California

What’s next

Federal officials have launched a nationwide effort to target improper spending in federal benefit programs, and more arrests are expected as part of this ongoing crackdown on health care fraud.

The takeaway

This case highlights the ongoing challenge of combating health care fraud, which drains billions from taxpayer-funded programs intended to help vulnerable populations. It underscores the importance of robust oversight and enforcement to protect the integrity of these critical social safety net programs.