7 Arrested in $3M California Hospice Fraud Scheme

State Attorney General says 'we're on it' as pressure mounts over waste, fraud, and abuse of taxpayer dollars

Feb. 5, 2026 at 8:39pm

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Seven people have been arrested and charged with felony fraud for their alleged roles in a $3.2 million hospice billing scheme in Monterey County, California. The suspects are accused of recruiting and enrolling patients who did not have terminal diagnoses, then shuffling them between fraudulent clinics to submit fake bills to Medi-Cal and Medicare.

Why it matters

The arrests come as California faces growing scrutiny over claims of widespread healthcare fraud, with the head of the Centers for Medicare and Medicaid describing the state as 'ground zero' for such crimes. Prosecuting these types of schemes is seen as crucial to curbing the abuse of taxpayer-funded programs.

The details

Felony charges were filed against seven individuals associated with Compassionate Touch Hospice, Spiritual Touch Hospice, and Fountain Hospice. The alleged conspirators include nurses, medical directors, and clinic owners who are accused of recruiting patients without terminal diagnoses and shuffling them between facilities to submit fraudulent bills totaling $3.2 million.

  • The California Attorney General's office acted on a tip from the California Board of Registered Nursing and spent years investigating the 'sophisticated conspiracy'.
  • The arrests were announced on February 5, 2026.

The players

Rob Bonta

California Attorney General who stated 'we want Californians to know that we are on it' in regards to combating healthcare fraud.

Nimfa Molina

Nurse charged in the alleged $3.2 million hospice fraud scheme.

Luis Artavia, Mark Samonte, Shomir Banerjee

Medical directors charged in the alleged $3.2 million hospice fraud scheme.

Danny Lodevico, Flor Mora, Christine Nugiud-Yem

Clinic owners charged in the alleged $3.2 million hospice fraud scheme.

Mehmet Oz

Head of the Centers for Medicare and Medicaid who described California as 'ground zero' for healthcare fraud.

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What they’re saying

“We want Californians to know that we are on it. To those committing fraud: we're watching, we're investigating, and we'll act.”

— Rob Bonta, California Attorney General

“When bad actors trick patients into fraudulent hospice care, they don't just drain taxpayer dollars; they strip people of the medical care that could have helped them live longer. That's unconscionable, and we are going to drive these predators out of the system.”

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

What’s next

The judge will decide on Tuesday whether to allow the suspects to be released on bail.

The takeaway

This case highlights the ongoing battle against healthcare fraud in California, where officials are under pressure to crack down on the abuse of taxpayer-funded programs. Prosecuting these types of sophisticated schemes is seen as crucial to protecting vulnerable patients and recovering stolen funds.