ATTORNEY NEWSLETTER
21 Individuals Charged With Fraud And Other Crimes
$267 Million Allegedly Received For Hospice Services Never Rendered
Handguns and $750,000 In Cash Seized
Private citizens and businesses help the government recover billions every year in cases of fraud against the government. The private citizens and businesses assisted the government in recovering these funds by bringing civil lawsuits on behalf of the government under the False Claims Act, (“FCA”), 31 U.S.C. § 3729 et seq. The private individuals or businesses bringing the actions are known as “relators,” and the cases themselves referred to as “qui tam” cases. If the government recovers, the relators are eligible for rewards. 31 U.S.C. § 3730(d). The majority of qui tam cases filed annually concern fraud in the healthcare sector, where Medicare or Medicaid funds have been paid out on false claims. Relators of fraudulent conduct are often former employees, accountants, controllers, directors or managers, or competitors of the business engaging in the fraud. If you have credible information of fraud against the government in violation of the FCA in San Francisco or elsewhere in California, call us today at (415)441-8669 and we can help. Our toll-free number is 1-888-50EVANS (888-503-8267).
Large Hospice Fraud Ring Busted
California Attorney General Rob Bonta, together with the California Department of Health Care Services (DHCS), recently announced charges filed against 21 suspects and the dismantling of a major hospice fraud scheme that defrauded California of $267 million.[1] Operation Skip Trace resulted in the arrest of five people after ten different locations were searched in Southern California. In addition, two handguns and over $757,000 in cash were seized.
“This isn’t a political game for us. This is about protecting taxpayer dollars, protecting the programs that sick and vulnerable Californians rely on, and protecting our state,” said Attorney General Rob Bonta. “Over the life of this fraud scheme, not a single legitimate hospice service was ever provided yet millions were billed in a brazen, calculated scheme that exploited the Medi-Cal system. This wasn’t a mistake or a loophole; it was deliberate fraud. This kind of abuse undermines trust, drains critical resources, and threatens care for those who truly depend on it. This is a perfect example that we have taken a firm stand to investigate, prosecute, and shut down hospice fraud wherever it exists.”
The investigation was initiated after the California Department of Justice (DOJ) received a credible allegation of fraud from DHCS. Subsequent investigative efforts uncovered a scheme where individuals purchased personal identifying information for non-California residents from the dark web and enrolled those identities in Medi-Cal through Covered California. 14 hospice companies were purchased by straw owners and the billers began billing for hospice services for the stolen identities. No hospice services were ever rendered. The total fraudulent billing, according to the DOJ, is approximately $267 million.
DOJ filed charges against 21 suspects, in three different criminal complaints. The defendants are charged with conspiracy to commit health care fraud, health care fraud, money laundering, and identity theft. In addition, there is an aggravated white collar crime enhancement and an aggravated money laundering enhancement.
During Attorney General Bonta’s tenure, DOJ has conducted 294 hospice-related investigations, filed 119 hospice-related criminal cases, and secured 51 hospice-related convictions. In 2025, DOJ launched a hospice fraud initiative to empower patients, families, law enforcement, and healthcare providers with the knowledge needed to recognize and report fraudulent practices in the hospice care system.
Contact Us
If you have credible information of hospice or other government fraud in San Francisco or elsewhere in California, call Ingrid M. Evans at (415) 441-8669, or toll-free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. In addition to FCA and CFCA whistleblower cases, Ingrid and Evans Law Firm, Inc. also handle bank fraud whistleblower cases under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program.
[1] Evans Law Firm, Inc. was not involved in the government enforcement effort. The matter was reported on by a press release by California Attorney General Bonta’s office.
