California Fraudsters Profit in End Of Life Hospice Scam

1. Scale of the Fraud Authorities uncovered a large‑scale hospice fraud scheme totaling approximately $267 million. The investigation, referred to as Operation Skip Trace, led to 21 individuals being charged, with multiple arrests already made. At least 14 fraudulent hospice companies were used, and investigators later identified over 130 associated shell companies. 2. How the Scheme Worked No legitimate hospice services were provided to patients — billing was entirely fraudulent. Fraudsters: Purchased or obtained stolen personal identities, sometimes from the dark web. Enrolled fake or non‑terminal patients into hospice care programs. Submitted false claims to Medi‑Cal (California Medicaid) and Medicare. Some patients were real people but were not terminally ill or receiving hospice care. Patients sometimes received small kickbacks, while operators kept the majority of the funds. 3. Licensing and Oversight Failures Suspects exploited weak hospice licensing and vetting systems in California. Once a hospice license was obtained, operators could bill federal programs with minimal upfront verification. Investigators and federal officials criticized California for: Insufficient identity verification Lack of proactive fraud detection Allowing money to be paid out before validation 4. Financial Impact and Recovery Only about $30 million of the $267 million was recovered at the time of reporting. Much of the stolen money was allegedly: Spent on luxury assets (cars, homes, travel) Moved through shell companies Transferred overseas Recovery is difficult once funds leave the system or country. Please Hit Subscribe to this podcast Right Now. Also Please Subscribe to the The Ben Ferguson Show Podcast and Verdict with Ted Cruz Wherever You get You're Podcasts. And don't forget to follow the show on Social Media so you never miss a moment! Thanks for Listening X: https://x.com/benfergusonshowSee omnystudio.com/listener for privacy information.