Southern California’s Medicare Fraud Investigation: 8 Cases with a $60 Million Impact
DOJ Targets ‘Kingdom of Fraud’ in Major Hospice Takedown
LOS ANGELES — In a sweeping federal operation dubbed "Operation Never Say Die," the Department of Justice (DOJ) has charged 15 individuals—including eight local arrests—for their alleged involvement in a $60 million Medicare fraud scheme affecting hospice services in Southern California.
The operation, which also involved the FBI and the Vice President’s Task Force to Eliminate Fraud, specifically addressed "sham" hospice facilities in Los Angeles and Orange Counties. Authorities allege that these clinics offered financial incentives to recruit healthy individuals, falsely billing Medicare for end-of-life care for patients who were not terminally ill.
Federal agents executed raids this week, dismantling what prosecutors have described as a "kingdom of fraud." These fraudulent activities allegedly drained taxpayer funds intended for legitimate hospice care, enriching perpetrators while undermining the Medicare system designed to protect vulnerable citizens.
The Scheme
Investigators uncovered a network composed of nurses, doctors, and "patient recruiters" operating from suburban homes in locations like Covina and medical facilities in Glendale. The local operators reportedly exploited the Medicare system as if it were a personal ATM, billing for services rendered to patients who were far from death.
Local Cases Under Investigation
Several high-profile cases exemplify the breadth of the alleged fraud:
$9 Million "Artesia" Scheme: Lolita Beronilla Minerd, a licensed vocational nurse, is accused of running Topanga Hospice Care Inc. as a front for fraudulent billing, allegedly submitting claims for over $9 million between 2020 and 2025 for services to healthy individuals.
Glendale "Ghost" Facilities: Nita Almuete Paddit Palma and her spouse, Adolfo Catbagan, are believed to have operated multiple hospice facilities while Palma was legally barred from the industry. They are accused of billing $4.8 million for services ostensibly provided to patients who never received medical care.
Anaheim Family Fraud: Married couple Amelou and Gladwin Gill, co-owners of 626 Hospice and St. Francis Palliative Care, allegedly siphoned over $5.2 million from Medicare, funding a lavish lifestyle through illegal kickbacks.
Broader Implications
Operation Never Say Die represents a significant strike in the federal government’s "War on Fraud." This initiative aims to dismantle systemic corruption within the healthcare sector by employing advanced data modeling techniques and a prevention-first strategy. Authorities have already suspended over 200 California providers this year, emphasizing swift action against suspected fraudulent practices.
According to First Assistant U.S. Attorney Bill Essayli, "This is not a one-off raid. We are looking at the recruiters, the doctors who signed the fake certifications, and the ‘ghost’ owners behind the scenes."
Future Developments
As the legal proceedings unfold, the eight individuals arrested are making initial appearances in U.S. District Court. The DOJ’s Asset Forfeiture and Recovery Section is actively working to seize assets tied to the approximately $60 million in fraud, and officials suggest that more arrests may follow as investigations continue into the web of illegal kickbacks and forged documents.
