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California Cracks Down on Massive Hospice Fraud Scheme Worth $267 Million

KVIA•Thursday, April 9, 2026 at 9:35 PM•CNN Newsource

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California officials have announced the dismantling of a significant hospice fraud operation that allegedly defrauded the state of over $267 million intended for end-of-life care. Dubbed 'Operation Skip Trace', the investigation has led to charges against more than 20 individuals, with five arrests made so far. The fraudulent network involved shell companies that exploited the Medi-Cal system by enrolling healthy out-of-state residents into hospice care and billing for non-existent services. State Attorney General Rob Bonta emphasized California's commitment to combating healthcare fraud, countering claims from the Trump administration that the state has neglected this issue. The accused could face up to 16 years in prison if convicted.

Key Details: • Operation Skip Trace initiated last spring after a tip-off regarding hospice fraud. • Over 20 individuals charged, with five arrests made. • Accused could face a maximum of 16 years in prison if found guilty. • California's Department of Justice has recovered over $1.5 billion from fraud cases in the last decade.

healthcare california fraud hospice medi-cal

People & Organizations

CaliforniaDonald TrumpGavin NewsomLos AngelesRob BontaCenters for Medicare & Medicaid ServicesMehmet OzBill EssayliCalifornia Department of Justice

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