Federal prosecutors have charged 15 people in Southern California in connection with a wide-ranging scheme that allegedly defrauded Medicare of more than $50 million through sham hospice operations, authorities said April 2.
Eight defendants — including nurses, a chiropractor, and a purported psychologist — were arrested in coordinated raids across the Los Angeles area, according to the U.S. Attorney’s Office.
Prosecutors allege the defendants operated fraudulent hospice companies that enrolled patients who were not terminally ill and billed Medicare for unnecessary or nonexistent services. In some cases, beneficiaries were recruited with monthly cash payments to sign up for hospice care, according to court documents.
“The defendants arrested this morning who are charged with stealing millions of dollars of health care benefits got caught and now face years in federal prison,” First Assistant U.S. Attorney Bill Essayli said at an April 2 press conference.
The scheme allegedly resulted in more than $50 million in losses to taxpayers, according to the U.S. Department of Health and Human Services Office of Inspector General.
The anti-fraud operation
The operation was led by Vice President JD Vance's National Anti-Fraud Task Force, according to FOX11 Los Angeles. Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz said at a press conference this month that nearly one-third of all hospice providers in the U.S. are registered in Los Angeles County.
"Nationwide, we have just over 6,000 hospices, so why would almost one-third of all the hospices in the whole country be in Los Angeles County?" Oz said.
Oz announced a plan to review every hospice in California by the end of the year, along with a nationwide moratorium on certain medical equipment tied to fraudulent billing, according to FOX.
In early January, when announcing the fraud investigation in California, President Donald Trump said in a post on Truth Social that California under Democratic Gov. Gavin Newsom is “more corrupt than Minnesota.”
Federal authorities said they expect similar "cluster" takedowns every few months as the 2026 initiative continues to audit high-billing hospice agencies nationwide.
The charges
Among those charged was Lolita Minerd, 65, a licensed vocational nurse in Anaheim who allegedly submitted over $9.1 million in fraudulent Medicare claims through her Topanga Hospice Care, according to Hospice News. Prosecutors say her company's live discharge rate was nearly five times the national average.
Gladwin Gill, 66, a psychologist, and his wife, Amelou Gill, 70, a registered nurse, are accused of using their daughter’s identity to bypass their own criminal histories and open a hospice operating as “St. Francis Palliative Care,” allegedly billing Medicare more than $5.2 million. Prosecutors say the couple spent the proceeds on personal expenses, including international travel.
According to a federal complaint obtained by Law&Crime, some patients were unaware they had been enrolled in hospice care. The complaint alleges the Gills’ company enrolled and re-enrolled patients who were not terminally ill and were never informed they had a qualifying prognosis of six months or less to live.
Nita Palma, 76, and her husband, Adolfo Catbagan, 68, are charged with operating three fraudulent hospice companies in Glendale that billed Medicare at least $4.8 million for patients who were not terminally ill, according to the U.S Attorney’s Office press release. Prosecutors say Palma, who was barred from running such businesses due to a past fraud case, controlled the operations while Catbagan served as the listed owner to conceal her involvement.
Suspects face up to 10 years in federal prison on healthcare fraud charges and up to 20 years on wire fraud. Those in custody in other states will be extradited to the Central District of California for arraignment in the coming weeks.