California AG Bonta Charges 21 in $267M Hospice Fraud Scheme

Bonta's office finally takes action after months of denying widespread fraud in the state.

Apr. 10, 2026 at 2:27am

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A dimly lit government office with a lone figure at a desk, the space bathed in warm, diagonal sunlight and deep shadows, conceptually representing the tension over fraud investigations in California.The California Attorney General's office faces scrutiny over its response to widespread fraud allegations.Los Angeles Today

California Attorney General Rob Bonta announced the charging of 21 individuals in connection with a $267 million hospice fraud scheme, marking a shift from his previous stance of downplaying the issue of fraud in the state.

Why it matters

Bonta and Governor Gavin Newsom had faced criticism for dismissing claims of widespread fraud in California, even as federal prosecutors ramped up investigations. This case highlights the ongoing tension between state and federal authorities over rooting out fraud and misuse of taxpayer funds.

The details

Bonta's office charged 21 people for their roles in a scheme involving 14 hospices that allegedly billed taxpayers for sham services. The charges come after months of Bonta and Newsom denying the existence of significant fraud in California, even as federal prosecutors like Bill Essayli warned of hundreds of billions in potential fraud under the state's watch.

  • In February, Bonta scoffed at the prospect of widespread fraud in California.
  • On April 2, Essayli, the First Assistant U.S. Attorney for the Central District of California, criticized Bonta and Newsom for not doing enough to fight fraud.
  • On April 9, Bonta announced the charges related to the $267 million hospice fraud scheme.

The players

Rob Bonta

The California Attorney General who initially dismissed claims of widespread fraud in the state but has now announced charges related to a $267 million hospice fraud scheme.

Gavin Newsom

The Governor of California who, along with Bonta, had faced criticism for downplaying the issue of fraud in the state.

Bill Essayli

The First Assistant U.S. Attorney for the Central District of California who has been critical of Bonta and Newsom's handling of fraud investigations in the state.

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What they’re saying

“Having my office prosecute fraudsters to whom California blindly handed out millions does not count as 'fighting fraud'. It's the federal government cleaning up after you and the [g]overnor's incompetence.”

— Bill Essayli, First Assistant U.S. Attorney for the Central District of California

“I expected fraud against taxpayers to reach 'hundreds of billions' of dollars under the watch of 'fraud king' Newsom.”

— Bill Essayli, First Assistant U.S. Attorney for the Central District of California

What’s next

The judge in the case will decide on Tuesday whether or not to allow the defendants out on bail.

The takeaway

This case highlights the ongoing tension between state and federal authorities over rooting out fraud and misuse of taxpayer funds in California, with the federal government stepping in to address issues that state leaders initially dismissed.