Federal takedown targets alleged $60 million Medicare hospice fraud across Los Angeles area; doctors, nurses among those charged
Federal prosecutors charged 15 people in Southern California for an alleged $60 million Medicare hospice fraud scheme called “Operation Never Say Die,” announcing coordinated April 2 arrests of doctors, nurses and others who allegedly billed Medicare for non‑terminal patients.
- 15 defendants were charged in a sweep prosecutors call “Operation Never Say Die.” Eight were arrested April 2 in coordinated raids. Source: U.S. Department of Justice.
- Estimated loss: Prosecutors say roughly $60 million in false Medicare claims were submitted. Coverage: Fox 11 Los Angeles.
- Warrants executed in multiple communities from Covina to Lakewood, including Van Nuys and Glendale; see the press conference video and local reporting from ABC7 Los Angeles.
- Officials will continue audits and nationwide enforcement targeting high‑billing hospice agencies, per the DOJ announcement.
The operation and arrests
First Assistant U.S. Attorney Bill Essayli announced indictments at a news conference with federal partners including the FBI and the Centers for Medicare & Medicaid Services (CMS). Authorities say the arrests and search warrants hit multiple locations across Los Angeles County and surrounding areas. The DOJ describes the action in its announcement: U.S. Department of Justice.
Eight people were taken into custody the morning of April 2, 2026; prosecutors said additional arrests and charges are expected as the investigation continues. Local television outlets documented the coordinated search warrants and arrests in Covina, Anaheim, Glendale and Lakewood — see local coverage from ABC7 Los Angeles and Fox 11 Los Angeles, and the federal press conference video: press conference video.
How the alleged scheme worked
Prosecutors describe a pattern of recruiting Medicare beneficiaries who were not terminally ill, paying them to enroll in hospice programs and claim end‑of‑life care needs. Some beneficiaries were allegedly paid about $300 a month and offered free vitamins to pose as hospice patients. Authorities say providers then submitted Medicare claims for hospice services that were never provided or were unnecessary.
Federal officials say this network of providers and billing schemes produced large, repeated Medicare payments for hospice services. The DOJ statement details the fraudulent claims and enforcement rationale: U.S. Department of Justice.
Notable case: the Gill family
Authorities named Gladwin Gill, 66, a psychologist from Covina, and his wife, Amelou Gill, a registered nurse, among those arrested. Prosecutors allege the couple operated a Glendale hospice that submitted more than $5.2 million in fraudulent claims and collected more than $4 million from Medicare. The couple denies the allegations, according to local reporting from Fox 11 Los Angeles.
Scale of the problem in Los Angeles
Investigators reported concentrated and unusual patterns of hospice licensing and billing in parts of Los Angeles County. In one Van Nuys neighborhood, authorities found 42 different hospice licenses operating within roughly four blocks. Officials also flagged a sharp jump in provider suspensions tied to suspected fraud — 221 providers suspended at one point, up from 70 the prior week, a 215% increase, according to local reporting by Fox 11 Los Angeles.
Federal officials warned that small, high‑billing agencies can submit large claims quickly, making detection by Medicare difficult without targeted enforcement. The DOJ describes this takedown as part of a larger effort to identify and stop abusive hospice billing practices: U.S. Department of Justice.
Charges, penalties and next steps
Defendants face federal charges that carry steep penalties if convicted. Prosecutors noted statutory maximums including up to 10 years in prison for health care fraud and up to 20 years for wire fraud. Those arrested are expected to make initial court appearances in Los Angeles federal court in the weeks after the sweep. More on case filings and context in local coverage: Fox 11 Los Angeles.
CMS response and broader review
CMS Administrator Dr. Mehmet Oz joined federal officials at the press conference and announced an aggressive review of hospice providers in California. “We’re going to review every single hospice in California to make sure that they’re all appropriate, and we hope to do that expeditiously. We’ll do it this year,” Oz said, according to local reports from Fox 11 Los Angeles and the press conference video.
“Unusually high survival rates among hospice patients can indicate fraud,” officials said, noting survival statistics may trigger audits.
A viral video of Oz speaking in front of a Van Nuys bakery prompted controversy; the owner called the remarks false and discriminatory. Essayli confirmed none of the defendants named in Thursday’s announcement were linked to that specific video. Oz said he was “stating the facts as they’ve been explained to me” and referenced numbers and survival rates as evidence rather than linking a particular business to the charges. See the press conference footage and local reporting from Fox 11 Los Angeles.
Political response
California Gov. Gavin Newsom pushed back on federal criticism, arguing the federal government is responsible for Medicare oversight. He criticized the Biden administration’s predecessors in blunt terms, framing the dispute as part of broader tensions over responsibility for preventing and policing Medicare fraud. Local reporting and reactions are summarized by Fox 11 Los Angeles.
Evidence, oversight and questions to watch
Federal officials cited billing patterns, patient survival rates and licensing clusters as triggers for the probe. CMS experts say unusually high survival percentages — for example, over 50% survival among patients expected to die within six months — can indicate improper enrollment or patient selection. Investigators plan continued audits and takedowns of high‑billing hospice agencies nationwide as part of 2026 enforcement efforts. Sources: U.S. Department of Justice, Fox 11 Los Angeles.
Implications for Los Angeles, California
Economic: Prosecutors say the scheme cost Medicare — and therefore taxpayers — millions. Recovering funds and stopping fraudulent billing could protect local Medicare spending and temper insurance‑related cost pressures.
Political: The takedown has already prompted political back‑and‑forth between state and federal officials and could shape calls for clearer oversight, faster data sharing and potential legislative changes to hospice enrollment rules. Local reporting: Fox 11 Los Angeles.
Social and cultural: Families may feel shaken and legitimate hospice providers worry about stigma. The Van Nuys neighborhood and other diverse communities singled out in reporting raised concerns about how public statements affect ethnic‑owned small businesses; officials must balance enforcement with care to avoid unfounded public accusations. See the press conference video and coverage by Fox 11 Los Angeles, ABC7 Los Angeles.
Practical: Medicare beneficiaries should review statements and billing notices for unexpected hospice charges and call 1‑800‑MEDICARE to report suspicious activity. Local providers should expect more audits, possible suspensions and higher compliance costs as agencies pursue suspected hospice fraud. The U.S. Attorney’s office and CMS say enforcement and audits will continue to reclaim funds paid on false claims: U.S. Department of Justice.
