California AG and US Attorney Clash Over Health Care Fraud Crackdown

Competing state and federal investigations target hospice fraud schemes in California

Apr. 10, 2026 at 7:10pm by

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An extreme close-up of a stack of medical insurance cards and documents, the harsh lighting creating dramatic shadows and textures that convey the gritty, investigative nature of this health care fraud case.The harsh glare of a police flash illuminates the tools of a sophisticated health care fraud scheme, exposing the brazen exploitation of government programs.San Francisco Today

California Attorney General Rob Bonta and US Attorney Bill Essayli are at odds over their respective efforts to tackle health care fraud in the state. Bonta announced a major bust in an investigation called 'Operation Skip Trace' that took down a $267 million Medi-Cal fraud scheme involving the purchase of personal information from the dark web. Meanwhile, Essayli recently announced a separate $50 million hospice fraud case, calling California the 'kingdom of fraud.' Bonta rejected Essayli's claims, stating the state has been targeting health care fraud for decades, while a federal official said Southern California has a hospice fraud problem on an entirely different level.

Why it matters

The clash between the state and federal authorities highlights the ongoing battle against health care fraud, which costs taxpayers billions of dollars each year. The competing investigations and rhetoric also raise questions about the coordination and prioritization of anti-fraud efforts in California, a state that has long grappled with various fraud schemes targeting government health care programs.

The details

In the state-level investigation, Operation Skip Trace led to over 20 arrests for a hospice fraud scheme that involved purchasing personal information from the dark web and using it to defraud the state's Medi-Cal program out of more than $267 million. At the federal level, US Attorney Bill Essayli announced a separate $50 million hospice fraud case, referring to California as the 'kingdom of fraud.' However, California Attorney General Rob Bonta rejected Essayli's claims, stating that the state has been targeting health care fraud for decades.

  • On April 9, 2026, California Attorney General Rob Bonta held a press conference announcing the results of Operation Skip Trace.
  • Last week, US Attorney Bill Essayli announced the federal $50 million hospice fraud case.

The players

Rob Bonta

The Attorney General of California who held a press conference announcing the results of the state's Operation Skip Trace investigation into a $267 million Medi-Cal fraud scheme.

Bill Essayli

The US Attorney who announced a separate $50 million hospice fraud case and referred to California as the 'kingdom of fraud.'

Mehmet Oz

An official at the Centers for Medicare and Medicaid who said Southern California has a hospice fraud problem that is on an entirely different level.

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What they’re saying

“Operation Skip Trace took down a brazen, calculated criminal Medi-Cal fraud scheme that exploited the Medi-Cal system, stole from California, and prevented services and care from going to sick individuals who need it.”

— Rob Bonta, Attorney General of California

“California is the kingdom of fraud.”

— Bill Essayli, US Attorney

“Southern California has a hospice fraud problem that is on an entirely different level.”

— Mehmet Oz, Official, Centers for Medicare and Medicaid

What’s next

The state and federal authorities are expected to continue their respective investigations and enforcement actions targeting health care fraud in California.

The takeaway

The clash between the California Attorney General and the US Attorney highlights the ongoing challenges in coordinating anti-fraud efforts and addressing the persistent problem of health care fraud, which remains a major issue costing taxpayers billions of dollars each year.