California probe uncovers $267M hospice fraud scheme

Attorney General Rob Bonta announces the takedown of a major fraud operation in Los Angeles County.

Apr. 10, 2026 at 2:17am

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An extreme close-up of a crumpled medical document reflecting a harsh, direct camera flash, conceptually representing the uncovering of a complex healthcare fraud scheme.A major fraud investigation exposes the exploitation of vulnerable hospice patients and the theft of millions in public healthcare funds.Los Angeles Today

California Attorney General Rob Bonta has announced the results of a major investigation into a $267 million hospice fraud scheme operating in Los Angeles County. The probe uncovered a complex network of fraudulent billing practices and patient recruitment tactics that exploited vulnerable individuals and bilked Medicare and Medicaid out of hundreds of millions of dollars.

Why it matters

This case highlights the ongoing problem of healthcare fraud, which costs taxpayers billions each year and undermines the integrity of critical social safety net programs. The large scale of this particular scheme, centered in the nation's second-largest city, demonstrates the need for continued vigilance and enforcement to protect patients and public funds.

The details

According to the Attorney General's office, the fraud ring recruited patients who were not actually terminally ill and enrolled them in hospice care, billing Medicare and Medicaid for services that were medically unnecessary or never provided. Investigators found the scheme involved kickbacks, false certifications, and other deceptive practices to maximize fraudulent payouts.

  • The investigation into the hospice fraud scheme began in 2023.
  • Charges were filed and arrests made in early 2026 after a multi-year probe.

The players

Rob Bonta

The Attorney General of California, who announced the results of the major healthcare fraud investigation.

Los Angeles County

The location where the $267 million hospice fraud scheme was uncovered and prosecuted.

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What they’re saying

“Hospice care is meant to provide comfort and dignity to those facing the end of life, not to line the pockets of fraudsters. We will not tolerate the exploitation of vulnerable patients or the abuse of vital public health programs.”

— Rob Bonta, California Attorney General

What’s next

Prosecutors are expected to file additional charges and seek lengthy prison sentences for the ringleaders of the fraud scheme in the coming months.

The takeaway

This case demonstrates the ongoing need for robust oversight and enforcement to combat healthcare fraud, which diverts critical resources away from patients and taxpayers. It also highlights the importance of thorough investigations to uncover complex fraud networks that prey on vulnerable populations.