Bodycam footage reveals raids in massive hospice scam investigation

Authorities in California have arrested five people and charged 21 suspects in a sweeping crackdown on an alleged $267 million hospice fraud scheme targeting the state’s Medi-Cal program.

The operation, led by the California Department of Justice, involved coordinated raids across Southern California as part of “Operation Skip Trace.”

Officials say more arrests are expected, with several suspects already issued notices to appear in court.

Attorney General Rob Bonta said the suspects billed Medi-Cal for hospice services that were never provided.

“There were no actual services… it was all made up,” he said, describing the scheme as a large-scale effort to defraud taxpayers.

Investigators allege the group used stolen identities purchased from the dark web to enroll fake patients in Medi-Cal.

They then acquired 14 hospice companies through straw owners and submitted fraudulent claims for reimbursement.

Charges include healthcare fraud, conspiracy, money laundering and identity theft, with additional enhancements for white-collar crime.

The case has raised broader concerns about oversight in the state’s healthcare system.

Officials say more than 300 hospices are now under investigation, with potential license revocations under review.

Separately, federal authorities recently charged eight individuals in a related $50 million healthcare fraud case, highlighting the scale of the issue.

Governor Gavin Newsom said the state remains committed to protecting public funds, vowing accountability for those exploiting critical healthcare programs.