Fraudsters in California allegedly stole over $50 million from Medicare by enrolling healthy people as “dying” hospice patients, exposing deep flaws in government oversight that rob taxpayers and betray the vulnerable.
Story Highlights
- Federal “Operation Never Say Die” arrests 8, charges 15 for $50-60M Medicare fraud via sham LA/Orange County hospices.
- Defendants paid kickbacks to healthy recruits, fabricated terminal illness records, and billed for fake end-of-life care.
- LA County, a national fraud hotspot billing 18% of U.S. hospice claims, highlights years of lax state enforcement.
- Federal prosecutors criticize California officials for enabling “brazen” schemes despite state moratoriums and revocations.
Operation Never Say Die Targets Sham Hospices
Federal authorities in the Central District of California unsealed charges on April 2, 2026, arresting eight individuals including hospice owners, nurses, a chiropractor, and a psychologist. The scheme defrauded Medicare of $50-60 million through fake facilities in Los Angeles and Orange Counties. Operators like Lolita Beronilla Minerd of Topanga Hospice Care Inc. billed over $9 million by enrolling healthy people as terminally ill patients. Kickbacks lured marketers to recruit non-dying individuals for nonexistent care.
Defendants Exploited Medicare for Profit
Gladwin and Amelou Gill ran a sham hospice under their daughter’s name after state barment, defrauding over $7 million with forged records. Defendants funded luxury lifestyles through millions in false claims from 2020-2025. U.S. Attorney Bill Essayli called the schemes “egregious” and “brazen,” noting Los Angeles County’s role as a fraud epicenter. IRS Criminal Investigation tracked the financial trails, while FBI highlighted Southern California’s high-risk environment for healthcare scams.
State Efforts Fall Short Amid Fraud Surge
Hospice fraud exploded in California post-2019 due to lax oversight, with LA County handling 18% of national billing. Governor Gavin Newsom’s 2022 moratorium and task force revoked 280 licenses and probed 300 more, yet federal action exposed ongoing gaps. State investigated 101 enterprises and charged 109, but barred operators persisted via proxies. Feds, via Vice President’s Task Force, stepped in as schemes diverted funds from legitimate elderly care, raising premiums and taxes for all Americans.
These operations undermine trust in programs meant for the truly vulnerable, fueling bipartisan frustration with elite-managed government failures. Taxpayer dollars meant for end-of-life support instead bought real estate and kickbacks, echoing broader concerns over fiscal mismanagement that erodes the American Dream of self-reliance.
Federal Prosecution Signals Broader Crackdown
FBI Assistant Director Akil Davis and IRS-CI Special Agent Tyler Hatcher described the fraud as a “calculated attack” on Medicare. Essayli prioritized Los Angeles cases, blaming prior lax enforcement under Biden-era policies. Short-term arrests halt payments and disrupt operations; long-term, they set precedents but reveal systemic oversight weaknesses. Political tensions rise as feds criticize Newsom’s administration despite state claims of success, uniting conservatives and liberals against deep state corruption.
Sources:
California hospice fraud investigation leads to arrests
Southern California Medicare fraud: 8 cases investigation
Multiple arrests in Operation Never Say Die targeting hospice healthcare fraud in CA
