Topline: Five people were arrested and 21 were charged after California officials said a hospice fraud ring used stolen identities, fake diagnoses and shell companies to siphon more than $267 million from Medi-Cal.
Published: April 11, 2026 12:21 pm ET
Randy Shaw
I cut my teeth in journalism when I began looking into what I saw as abuses of power in my local government. From then on, I was hooked on the dopamine rush of uncovering information.
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SACRAMENTO, CA — Five people were arrested and 21 were charged after California officials said a hospice fraud ring stole more than $267 million from Medi-Cal by using stolen identities, fake records and shell companies to bill for care that was never provided.
Fox News reported that California Attorney General Rob Bonta announced the arrests Thursday as part of a state investigation dubbed Operation Skip Trace, which targeted locations in Southern California.
Bonta said the investigation began with a tip from the California Department of Health Care Services alleging hospice fraud at 14 companies. His office then investigated those companies along with eight people suspected of money laundering, according to authorities.
Investigators found that people involved in the scheme purchased personal identifying information for individuals living outside California on the dark web, according to Bonta. Authorities said those identities were then used to enroll people in Covered California by falsely posing them as California residents.
According to authorities, straw owners then bought multiple hospice companies and began billing Medi-Cal, the state-administered Medicaid program, for services that were never provided to people whose identities had been stolen. Bonta said the suspects used fake records, nonexistent offices and fraudulent diagnoses to support the claims.
Bonta said the supposed patients were healthy, lived out of state and were completely unaware they had been enrolled in hospice care. He said no actual medical services were provided.
Authorities said the money paid out through the claims was funneled through a complex network of more than 130 shell companies and then hidden across bank accounts, payment apps and cryptocurrency in an effort to evade detection.
California Health and Human Services Secretary Kim Johnson said the Department of Health Care Services halted payments and suspended all fraudulent hospice providers. Johnson said a moratorium on new licensed providers is currently in place through January 2027.
Bonta said all 21 suspects had been accounted for through arrests, active warrants or notices to appear before a judge. He described the conduct as a brazen, calculated criminal scheme rather than billing mistakes, corner-cutting or up-charging care.
While announcing the case, Bonta also criticized the Trump administration over its statements about fraud in California. Fox News reported that California has been under renewed scrutiny in recent weeks and that eight people were arrested last week in a separate federal sweep tied to an alleged $60 million fraudulent Medicare billing scheme, according to Fox 11 Los Angeles.
Presumption of Innocence: A presumption of innocence means that any defendant in a criminal trial is presumed to be innocent until they have been proven guilty beyond a reasonable doubt in a court of law. The defendant in this case is only accused of the charges set forth in the criminal complaint. They are innocent until proven guilty.
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Five Arrested in Alleged $267 Million Medi-Cal Hospice Fraud Scheme in California
Five people were arrested and 21 were charged after California officials said a hospice fraud ring used stolen identities, fake diagnoses and shell companies to siphon more than $267 million from Medi-Cal.
By Randy Shaw
Published: April 11, 2026 12:21 pm ET
SACRAMENTO, CA — Five people were arrested and 21 were charged after California officials said a hospice fraud ring stole more than $267 million from Medi-Cal by using stolen identities, fake records and shell companies to bill for care that was never provided.
Fox News reported that California Attorney General Rob Bonta announced the arrests Thursday as part of a state investigation dubbed Operation Skip Trace, which targeted locations in Southern California.
Bonta said the investigation began with a tip from the California Department of Health Care Services alleging hospice fraud at 14 companies. His office then investigated those companies along with eight people suspected of money laundering, according to authorities.
Investigators found that people involved in the scheme purchased personal identifying information for individuals living outside California on the dark web, according to Bonta. Authorities said those identities were then used to enroll people in Covered California by falsely posing them as California residents.
According to authorities, straw owners then bought multiple hospice companies and began billing Medi-Cal, the state-administered Medicaid program, for services that were never provided to people whose identities had been stolen. Bonta said the suspects used fake records, nonexistent offices and fraudulent diagnoses to support the claims.
Bonta said the supposed patients were healthy, lived out of state and were completely unaware they had been enrolled in hospice care. He said no actual medical services were provided.
Authorities said the money paid out through the claims was funneled through a complex network of more than 130 shell companies and then hidden across bank accounts, payment apps and cryptocurrency in an effort to evade detection.
California Health and Human Services Secretary Kim Johnson said the Department of Health Care Services halted payments and suspended all fraudulent hospice providers. Johnson said a moratorium on new licensed providers is currently in place through January 2027.
Bonta said all 21 suspects had been accounted for through arrests, active warrants or notices to appear before a judge. He described the conduct as a brazen, calculated criminal scheme rather than billing mistakes, corner-cutting or up-charging care.
While announcing the case, Bonta also criticized the Trump administration over its statements about fraud in California. Fox News reported that California has been under renewed scrutiny in recent weeks and that eight people were arrested last week in a separate federal sweep tied to an alleged $60 million fraudulent Medicare billing scheme, according to Fox 11 Los Angeles.
Presumption of Innocence: A presumption of innocence means that any defendant in a criminal trial is presumed to be innocent until they have been proven guilty beyond a reasonable doubt in a court of law. The defendant in this case is only accused of the charges set forth in the criminal complaint. They are innocent until proven guilty.
Editor's Note: ThePo makes every effort to accurately transcribe the contents of affidavits of probable cause contained in criminal complaints. Often, the complaints themselves are copies of copies of faxed copies, and are difficult to read. To confirm the accuracy of our transcription, contact the Magisterial District Court listed above and request a copy of the criminal complaint. It's a public record to which you are entitled.
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Five Arrested in Alleged $267 Million Medi-Cal Hospice Fraud Scheme in California
Five people were arrested and 21 were charged after California officials said a hospice fraud ring used stolen identities, fake diagnoses and shell companies to siphon more than $267 million from Medi-Cal.
By Randy Shaw
Published: April 11, 2026 12:21 pm ET
SACRAMENTO, CA — Five people were arrested and 21 were charged after California officials said a hospice fraud ring stole more than $267 million from Medi-Cal by using stolen identities, fake records and shell companies to bill for care that was never provided.
Fox News reported that California Attorney General Rob Bonta announced the arrests Thursday as part of a state investigation dubbed Operation Skip Trace, which targeted locations in Southern California.
Bonta said the investigation began with a tip from the California Department of Health Care Services alleging hospice fraud at 14 companies. His office then investigated those companies along with eight people suspected of money laundering, according to authorities.
Investigators found that people involved in the scheme purchased personal identifying information for individuals living outside California on the dark web, according to Bonta. Authorities said those identities were then used to enroll people in Covered California by falsely posing them as California residents.
According to authorities, straw owners then bought multiple hospice companies and began billing Medi-Cal, the state-administered Medicaid program, for services that were never provided to people whose identities had been stolen. Bonta said the suspects used fake records, nonexistent offices and fraudulent diagnoses to support the claims.
Bonta said the supposed patients were healthy, lived out of state and were completely unaware they had been enrolled in hospice care. He said no actual medical services were provided.
Authorities said the money paid out through the claims was funneled through a complex network of more than 130 shell companies and then hidden across bank accounts, payment apps and cryptocurrency in an effort to evade detection.
California Health and Human Services Secretary Kim Johnson said the Department of Health Care Services halted payments and suspended all fraudulent hospice providers. Johnson said a moratorium on new licensed providers is currently in place through January 2027.
Bonta said all 21 suspects had been accounted for through arrests, active warrants or notices to appear before a judge. He described the conduct as a brazen, calculated criminal scheme rather than billing mistakes, corner-cutting or up-charging care.
While announcing the case, Bonta also criticized the Trump administration over its statements about fraud in California. Fox News reported that California has been under renewed scrutiny in recent weeks and that eight people were arrested last week in a separate federal sweep tied to an alleged $60 million fraudulent Medicare billing scheme, according to Fox 11 Los Angeles.
Presumption of Innocence: A presumption of innocence means that any defendant in a criminal trial is presumed to be innocent until they have been proven guilty beyond a reasonable doubt in a court of law. The defendant in this case is only accused of the charges set forth in the criminal complaint. They are innocent until proven guilty.
Editor's Note: ThePo makes every effort to accurately transcribe the contents of affidavits of probable cause contained in criminal complaints. Often, the complaints themselves are copies of copies of faxed copies, and are difficult to read. To confirm the accuracy of our transcription, contact the Magisterial District Court listed above and request a copy of the criminal complaint. It's a public record to which you are entitled.
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