Fraudsters in California’s “kingdom of fraud” bilked taxpayers out of over $50 million by enrolling healthy people as “dying” hospice patients, exposing deep cracks in government oversight that steal from programs meant for the truly vulnerable.
Story Highlights
- Federal “Operation Never Say Die” arrests 8, charges 15 for $50-60 million Medicare fraud via sham LA/Orange County hospices.
- Defendants paid kickbacks to healthy recruits, forged records, and billed for fake end-of-life care, diverting funds from real patients.
- LA County accounts for 18% of national hospice billing, labeled a high-risk fraud hotspot by FBI and IRS.
- U.S. Attorney Bill Essayli blasts state laxity under Newsom, echoing frustrations with elite mismanagement across party lines.
- Taxpayer losses fuel higher premiums and taxes, undermining trust in federal programs amid bipartisan anger at government failure.
Operation Never Say Die Targets Sham Hospices
Federal authorities executed “Operation Never Say Die” on April 2, 2026, arresting eight defendants and charging 15 individuals in Los Angeles and Orange Counties. Nurses, a chiropractor, and a psychologist allegedly ran sham hospice facilities that defrauded Medicare of $50-60 million. They enrolled healthy individuals as terminally ill patients, paid kickbacks for referrals, and fabricated medical records to bill for nonexistent care. This federal DOJ-led crackdown highlights brazen exploitation in a sector meant to aid the dying.
Key Defendants and Fraud Tactics Exposed
Lolita Beronilla Minerd, owner of Topanga Hospice Care Inc., allegedly submitted over $9 million in false claims, collecting $8.5 million from taxpayers. Gladwin and Amelou Gill operated a hospice under their daughter’s name despite prior barments, defrauding over $7 million through forged records. These schemes operated from 2020-2025, preying on Medicare vulnerabilities. U.S. Attorney Bill Essayli described the fraud as “egregious,” noting Los Angeles County as a persistent hotspot where such crimes occur “entirely too much.”
LA County: National Epicenter of Hospice Fraud
Los Angeles County represents 18% of U.S. hospice billing, earning the label “kingdom of fraud” from investigators. FBI Assistant Director Akil Davis and IRS-CI Special Agent Tyler Hatcher called Southern California a high-risk environment due to dense provider networks. Fraudsters funded luxury lifestyles with kickback money, diverting resources from legitimate end-of-life care for vulnerable elderly Medicare patients. This case underscores how lax oversight allows criminal enterprises to thrive, frustrating Americans on both sides who demand accountability from distant bureaucrats.
State efforts under Governor Gavin Newsom include a 2022 moratorium on new licenses and revocations of over 280 providers, with 300 more under review. Yet federal officials criticize California enforcement as insufficient, pointing to operators evading bans via proxies. Newsom touted state successes on March 24, 2026, but the federal operation reveals ongoing gaps that prior administrations failed to close.
Impacts on Taxpayers and Broader Government Failures
The $50-60 million loss raises healthcare premiums and taxes for all Americans, part of hundreds of billions in annual U.S. healthcare fraud. Legitimate patients suffer diverted care, eroding trust in hospice services designed for the terminally ill. Politically, feds under President Trump’s administration blame Biden-era laxity and state mismanagement, while Newsom claims leadership through his task force. This bipartisan outrage reflects a shared view: elites in the deep state prioritize power over protecting hardworking citizens pursuing the American Dream.
FBI and IRS emphasize these schemes as calculated attacks on vulnerable programs. Short-term, payment halts and arrests disrupt operations; long-term, federal precedent may deter fraud but exposes systemic oversight failures. In 2026, with Republicans controlling Congress, such takedowns signal renewed commitment to fiscal responsibility and limited government, yet highlight why many doubt Washington’s ability to serve the people.
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
