LOS ANGELES, CA — California authorities have charged 21 individuals in a sweeping hospice fraud case that prosecutors say exploited the state’s Medicaid system for hundreds of millions of dollars.
State Attorney General Rob Bonta announced the takedown of “Operation Skip Trace,” alleging the group orchestrated a scheme that billed approximately $267 million in fraudulent Medi-Cal claims. Investigators say the defendants used stolen identities, often obtained through the dark web, to enroll unsuspecting out-of-state individuals into California’s Medi-Cal program.
According to prosecutors, the suspects then created and operated at least 14 sham hospice companies that billed for services never provided. The scheme allegedly expanded through more than 130 shell companies used to launder funds across bank accounts, payment apps, and cryptocurrency platforms. Authorities highlighted one case involving roughly $33 million tied to a single defendant.
Officials said hospice fraud is a growing national issue, not limited to California, with similar cases reported across the country. Federal and state agencies have increased enforcement efforts, including recent arrests tied to tens of millions in fraudulent healthcare claims in Southern California.
The case also drew political attention after criticism from the Trump administration, which labeled the region a hub of fraud. Bonta rejected those claims, calling them politically motivated and emphasizing ongoing enforcement actions.
The investigation remains active as prosecutors pursue additional leads.
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