Operation Never Say Die targets $50M hospice Medicare fraud in LA
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A sweeping federal operation in Los Angeles uncovered a brazen, multimillion-dollar scheme that prosecutors say turned end-of-life care into a cash grab; He was allegedly using undead people to steal more than $50 million of taxpayers’ money.
Eight defendants, including nurses, a chiropractor and a purported psychologist, were arrested in a raid targeting fake nursing home operations and fraudulent medical billing schemes, according to the Justice Department.
Hospice companies at the center of the lawsuit are accused of enrolling healthy patients, paying kickbacks and pocketing millions from Medicare for treatments that were never needed or never provided.
“We maintain a zero-tolerance policy against criminals who defraud American taxpayers,” First Assistant U.S. Attorney Bill Essayli said in a statement Thursday. he said. “The defendants arrested this morning accused of stealing millions of dollars in healthcare benefits have been caught and now face years in federal prison.”
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Mugshots of multiple suspects charged in a $50 million health care fraud scheme linked to fake nursing home operations in Los Angeles (FBI)
One of the most striking allegations involves Lolita Minerd, an Anaheim nurse who worked for a nursing home that recruited patients at a market, prosecutors said, promising them free services and $300 a month in cash for registration.
One couple who signed up was not terminally ill, as their doctor confirmed, but was allegedly being paid $600 a month in envelopes of cash while billing Medicare for end-of-life care.
Minerd’s company alone claimed more than $9.1 million and collected nearly $8.5 million from taxpayers, authorities said.
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Federal agents are preparing for a coordinated operation targeting a multimillion-dollar healthcare fraud network (FBI)
This pattern was repeated in multiple cases, researchers say. Dying patients were enrolled in hospice care, marketers were paid illegal kickbacks, and providers made money while providing little or no legitimate care.
“The defendants charged today allegedly turned hospice care into a cash-generating operation, causing taxpayer losses of more than $50 million,” said HHS Inspector General T. March Bell. “Anyone who attempts to weaponize hospice care to serve Medicare should expect to be held accountable.”
In another case, a Covina couple, a nurse and a self-described psychologist allegedly took more than $4 million from Medicare and spent it on mortgages, international travel, restaurants and personal bills.
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Federal agents are preparing for a coordinated operation targeting a multimillion-dollar healthcare fraud network (FBI)
Federal prosecutors say a repeat offender went further, allegedly operating multiple fake nursing home businesses, already facing charges in a separate case, and was legally barred from operating such businesses.
Beyond the nursing home fraud, authorities say this takedown uncovered a $19 million scheme targeting a labor union health plan in which the defendants allegedly billed for fraudulent or unnecessary chiropractic and therapy services and even fabricated patient records.
“Today’s arrests are another decisive blow in our war against fraud,” said Department of Labor Inspector General Anthony D’Esposito. “If you steal from workers or taxpayers, your time is up. We will find you, we will investigate you, and we will hold you accountable.”
Southern California has become a hotbed of nursing home scams and other health care fraud schemes, authorities say.
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“The Southern California area is a high-risk environment for nursing home-related and many other health care frauds,” said Akil Davis, assistant director in charge of the FBI’s Los Angeles Field Office. He noted that the United States loses hundreds of billions of dollars each year to health care fraud, increasing premiums, co-payments and taxes for Americans.
Officials say the crackdown, called Operation Never Die, is part of a broader effort to dismantle fraud networks that exploit both taxpayers and vulnerable patients.
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“Health care fraud undermines federal programs, threatens public trust, and diverts resources away from legitimate patient care,” said IRS Special Agent in Charge of Criminal Investigation Tyler Hatcher. “Those who profit at the expense of taxpayers and patients will be held accountable.”
Authorities also warned that the damage goes far beyond dollars.
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“When employee benefit plans become targets of fraud, it’s not just the plans that are harmed, it’s every day working Americans, their families and their communities,” said Robert Prunty of the Labor Department.
Many of the defendants face up to 10 years in federal prison if convicted, with some charges carrying even longer sentences.
