Major Arrests Made in LA Hospice Fraud Linked to Medicare Scheme
Federal Authorities Target Large Hospice Care Fraud Scheme in Los Angeles
LOS ANGELES – Federal officials have announced a significant crackdown on a major hospice care fraud operation in Southern California, resulting in multiple arrests linked to a multimillion-dollar scheme. This operation is accused of defrauding Medicare by billing for unnecessary or non-existent end-of-life services.
A distinguished task force, including members from the FBI, the Department of Justice, and the Centers for Medicare and Medicaid Services (CMS), is spearheading this initiative, marking a critical step in the federal government’s efforts to combat healthcare fraud.
At a press conference scheduled for 9:30 a.m., key leaders will outline the details of the charges involved. The briefing will feature First Assistant U.S. Attorney Bill Essayli, Dr. Mehmet Oz, the CMS Administrator, and Akil Davis from the FBI’s Los Angeles Field Office.
The investigation pertains to a complex operation that exploits Medicare by billing for the highest levels of hospice services, often involving patients who are not terminally ill.
In January, Dr. Oz highlighted suspicious hospice agencies located in the Van Nuys area during a widely circulated video. He has alleged that a small segment of the Armenian American community is at the center of a conspiracy linked to a $3.5 billion fraud scheme, claims that have drawn criticism from Governor Gavin Newsom for being racially charged.
Dr. Oz noted that 42 hospice licenses appeared to be clustered within a four-block radius, often sharing office spaces to evade federal oversight. He asserted that these so-called "shell companies" are utilized by transnational crime organizations to obtain Medicare beneficiary numbers from approximately 100,000 patients, allowing them to submit fraudulent claims for services never rendered.
The official pointed out specific intersectionality along Van Nuys and Victory Boulevards to demonstrate the improbability of such a high concentration of agencies, stating, "So, either there are a lot of people dying here, or you got a fraudulent activity that is so good everyone wants to get in on it."
Following the press conference, the suspects are expected to enter the federal court system in Los Angeles. This enforcement action is part of a broader initiative aimed at auditing high-billing hospice agencies nationwide, with the goal of reclaiming billions in taxpayer funds by 2026.
