L.A. Medicare MAFIA EXPOSED––This is HUGE

Fraud blocks under magnifying glass on invoices.

Los Angeles County has become ground zero for a staggering $3.5 billion annual Medicare fraud scheme that’s robbing taxpayers blind while leaving vulnerable seniors without the care they desperately need.

Story Snapshot

Los Angeles County accounts for 18% of all national Medicare home health and hospice billing despite having only 2.5% of America’s senior population
Federal investigators estimate $3.5 billion in annual fraud from ghost patients, sham companies, and organized crime networks exploiting Medicare
Fraudulent hospices trap seniors by “owning” their Medicare numbers, preventing them from accessing legitimate care when they actually need it
Over 1,900 hospice providers operate in LA County—more than 36 states combined—with 112 different hospices registered at a single address

Federal Officials Expose Massive Medicare Looting Operation

CMS Administrator Dr. Mehmet Oz visited Los Angeles County in January 2026 to investigate what federal officials now characterize as the nation’s worst Medicare fraud epidemic. The numbers reveal a system completely out of control: hospice billing activity increased seven-fold in just five years, while home health agencies in LA County surged 46 percent between 2019 and 2023 even as national numbers declined by six percent. This isn’t market growth—it’s organized theft. Federal prosecutors previously dismantled the Mirzoyan-Terdjanian crime ring that stole $100 million using phantom clinics, establishing the blueprint fraudsters still exploit today.

Criminal Networks Exploit America’s Seniors

The fraud operates with shocking brazenness. Recruiters target elderly Americans in shopping centers and senior facilities, offering walkers, nutritional drinks, cash, and weekly visits in exchange for Medicare information. Once enrolled, fraudulent hospices bill Medicare $260 per day while providing zero care. Sheila Clark, president of the California Hospice and Palliative Care Association, describes the reality bluntly: “They’re human traffickers. They’re trafficking beneficiaries in and out of hospices, home health.” State auditors discovered 210 hospice agencies crammed within one square mile in Van Nuys, operating from strip malls and unmarked office buildings rather than medical facilities.

Seniors Trapped in Bureaucratic Nightmare

When legitimate medical needs arise, seniors enrolled in fraudulent hospices discover a devastating reality: they cannot access real care. The fraudulent provider “owns” their Medicare number, blocking legitimate doctors and hospitals from treating them. Seniors literally bang on doors at listed hospice addresses only to find nobody there. This creates a cruel paradox where America’s most vulnerable citizens remain enrolled in nonexistent programs while legitimate providers cannot help them. First Assistant U.S. Attorney Bill Essayli explains the accountability vacuum: “No one is making sure the money is actually being used where it’s intended to be used. Not only do the fraudsters benefit, but the real people who need the money are losing.”

California’s Response Falls Short Despite Aggressive Action

California Attorney General Rob Bonta has prosecuted 109 individuals and filed 24 civil fraud cases since 2021, while the state revoked over 280 hospice licenses and implemented a statewide moratorium on new licenses in 2022. Yet hundreds of fraudulent providers continue operating. Governor Newsom dismisses federal characterizations as “a political stunt,” claiming California already took substantial enforcement action. This federal-state dispute highlights a fundamental problem: fraudsters exploit gaps between federal oversight and state licensing authority. Congressional oversight committees have formally demanded detailed information from the HHS Office of Inspector General, signaling that legislative action may be forthcoming to close enforcement loopholes.

The LA County fraud epidemic represents more than financial waste—it exemplifies how unchecked government programs create opportunities for organized crime while abandoning the Americans they’re supposed to serve. The concentration of 1,923 hospice providers in one county, with some addresses housing 112 different licensed operations, demonstrates systemic failure requiring fundamental Medicare reform. Until federal authorities implement aggressive enforcement with real accountability mechanisms, taxpayers will continue funding criminal enterprises while seniors suffer without legitimate care options.