Arrests made in California fraud crackdown targeting LA hospice ring allegedly behind $267 million in bogus charges
CBS News • • nation
Key Points:
- The California Department of Justice and state agencies arrested five people linked to a $267 million hospice fraud ring targeting Medi-Cal, with charges filed against 21 suspects and more arrests expected.
- The scheme involved purchasing stolen identities from the dark web to enroll non-California residents in Medi-Cal, then billing for fake hospice services through 14 state-licensed hospice companies.
- Charges include conspiracy, health care fraud, money laundering, identity theft, and aggravated white collar crime enhancements, with investigations ongoing into over 300 hospices for possible license revocation.
- The crackdown is part of Operation Skip Trace, with officials emphasizing the importance of protecting taxpayer dollars and pursuing fraud cases across political lines.
- California officials seek stronger federal partnerships to prevent future fraud, while Governor Gavin Newsom reiterated the state’s commitment to holding perpetrators accountable and safeguarding public programs.
