Federal sweep cracks down on alleged sham hospice network in Southern California; eight arrested in Medicare fraud probe
Federal authorities executed ‘Operation Never Say Die’ in Southern California, arresting eight and charging 15 in an alleged $60 million Medicare fraud scheme that used sham hospice facilities to bill for unnecessary care and recruit non‑terminal beneficiaries.
Key takeaways
- Operation Never Say Die targeted alleged sham hospices across Southern California, including Covina, Glendale, Anaheim and Lakewood, exposing roughly $60 million in false Medicare claims.
- Arrests and charges: Eight people were arrested and a total of 15 face federal charges alleging large-scale billing and recruitment schemes to exploit hospice payments.
- Recruitment tactics: Authorities say beneficiaries who were not terminally ill were paid cash and given perks to pose as hospice patients; Medicare paid millions on claims deemed unnecessary.
- Federal response: Officials suspended hundreds of providers, announced expanded audits, and signaled coordinated national efforts to identify high‑risk hospice agencies.
Overview
Federal prosecutors and law enforcement announced a major healthcare fraud takedown in Southern California under the banner “Operation Never Say Die.” Officials say the probe uncovered an alleged $60 million Medicare fraud scheme involving sham hospice facilities and related providers. For the initial release, see the DOJ release.
The operation and arrests
Federal teams executed coordinated arrests and search warrants across the region on Thursday. First Assistant U.S. Attorney Bill Essayli led a press briefing alongside the FBI and partner agencies. Local coverage includes reports from Fox 11 Los Angeles and ABC7.
Authorities say teams served warrants from Covina to Lakewood to disrupt what officials described as an organized effort to exploit Medicare hospice payments. Among those detained were clinicians and business operators: three nurses, a chiropractor, a psychologist and hospice owners. One defendant was arrested in Idaho; others will appear in federal court in Los Angeles.
The alleged fraud scheme
Prosecutors assert the defendants recruited beneficiaries who were not terminally ill, offering payments and perks to enroll them in hospice programs and then billing Medicare for services not medically necessary. Local reporting described $300 monthly cash payments and free vitamins used to entice recruits, producing millions in improper payments.
“Medicare then paid millions on claims for services that were not medically necessary,” officials said at the briefing.
A high-profile example named by prosecutors involves a Covina couple: psychologist Gladwin Gill, 66, and his wife, registered nurse Amelou Gill. They are accused of operating a Glendale-based hospice that submitted more than $5.2 million in allegedly fraudulent claims, of which Medicare paid out more than $4 million. Gladwin Gill’s attorney has publicly denied the allegations and said he looks forward to his day in court (see Fox 11 Los Angeles).
Investigators also flagged “license flipping”—many hospice licenses concentrated within small areas, which officials say can mask shell operations or hide rapid ownership changes. Investigators reported finding 42 different hospice licenses within four blocks in Van Nuys, a pattern they described as suspicious (see Fox 11 Los Angeles).
Enforcement actions and scale
Federal officials said these arrests are part of a broader push to identify high-risk hospice providers and reclaim misspent taxpayer dollars. Law enforcement reported suspending a total of 221 providers in Los Angeles for suspected fraud—a sharp rise from 70 the previous week. Suspects face charges carrying substantial penalties, including up to 10 years for healthcare fraud and up to 20 years for wire fraud (see U.S. Department of Justice).
Broader review and federal response
Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services (CMS), joined the announcement and pledged expanded scrutiny of hospice providers. Oz announced plans for an expanded review of hospice agencies in California and a wider federal audit effort as part of a 2026 initiative, noting unusual survival rates among some hospice populations as a red flag.
Oz faced criticism after referencing a separate video showing a man in front of an Armenian-owned bakery in Van Nuys; officials clarified none of the defendants named in the announcement were connected to that video. For the video referenced by reporters, see the video of the remarks.
Political reaction
California Governor Gavin Newsom sharply criticized federal leaders, accusing them of shifting blame for oversight failures. “The Trump Administration — home to the biggest fraudsters on Earth — is trying to blame California for issues with THEIR federal programs,” Newsom said. The exchange underscores tension between state and federal officials over responsibility for program oversight.
Implications for San Diego, California
Economic impact: San Diego Medicare providers and local hospices may face increased audits, payment slowdowns, or temporary suspensions as regulators expand reviews. Clawbacks could strain small community-based agencies.
Political consequences: Local lawmakers may push for tighter state monitoring of hospice licensing and claims; coordination between California agencies and CMS could become a focal point.
Social effects: Families may lose trust in hospice providers and demand more transparency. Patient advocates will likely increase outreach to help beneficiaries understand hospice qualifications and reporting channels.
Cultural relevance: Allegations of sham hospices can disproportionately affect immigrant and minority communities; officials and community groups should prepare multilingual outreach to protect vulnerable residents.
Practical guidance for residents: Verify hospice credentials, ask for clear prognoses and care plans, and be wary of cash or gifts tied to enrollment. Suspected fraud can be reported to Medicare at 1-800-MEDICARE or online. For official materials and reporting guidance, see the Medicare reporting guidance.
Sources and reporting
Reporting compiled from the U.S. Department of Justice, Fox 11 Los Angeles, ABC7, and the video of press remarks.
