California AG Rob Bonta Announces Crackdown on Hospice Fraud
Why It Matters
The case protects taxpayer dollars, preserves hospice program integrity, and deters future fraud targeting vulnerable Californians.
Key Takeaways
- •Operation Skip Trace busted a $267 million hospice fraud scheme.
- •21 suspects charged; five arrested across ten Southern California locations.
- •Scheme used stolen out‑of‑state identities and 130 shell companies.
- •California DOJ recovered over $30 million and halted $40 million payments.
- •Partnership with DHCS, Governor’s office, and health agencies essential.
Summary
California Attorney General Rob Bonta announced the culmination of Operation Skip Trace, a coordinated investigation that uncovered a massive hospice fraud operation in Los Angeles County.
The scheme allegedly siphoned $267 million from state Medicaid funds by enrolling thousands of stolen out‑of‑state identities into California’s hospice program, billing for nonexistent services, and laundering proceeds through more than 130 shell companies. DOJ filed felony charges against 21 individuals, arrested five, and recovered over $30 million while stopping $40 million in pending payments.
Bonta emphasized that “this was a brazen, calculated criminal scheme” and praised the collaborative effort with the Department of Health Care Services, the Governor’s office, and other agencies. He noted that the Division of Medical Fraud and Elder Abuse has pursued nearly 300 hospice investigations since 2021, securing 51 convictions.
The bust signals heightened enforcement against health‑care fraud in California and underscores the need for robust identity‑verification safeguards. It also serves as a warning to fraud networks nationwide that state authorities possess the resources and inter‑agency coordination to dismantle complex schemes.
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