Eight Arrested in $50 Million Los Angeles Healthcare Fraud Scheme
Eight Arrested in $50 Million Los Angeles Healthcare Fraud Scheme
On April 2, 2026, federal authorities launched "Operation Never Say Die," a major crackdown on healthcare fraud in the Los Angeles area.
Eight individuals were arrested for their roles in schemes totaling over $50 million in losses to Medicare and union health plans.
Among the core allegations is widespread hospice fraud.
Defendants allegedly operated sham hospice facilities, billing for services never provided to patients who were not terminally ill.
Tactics included paying illegal kickbacks for referrals and forging documents.
Attorney Bill Essayli described Los Angeles as a hub for such fraud, emphasizing a "zero-tolerance" stance.
While federal officials criticized the state's oversight, Governor Gavin Newsom’s office noted that California has already revoked over 280 hospice licenses since 2021.
This operation highlights critical vulnerabilities in the American healthcare system.
