Fraudsters in California bilked Medicare out of $50-60 million by faking terminal illnesses for healthy patients, exposing deep flaws in government oversight that rob taxpayers and betray the vulnerable.
Story Snapshot
- Federal “Operation Never Say Die” arrests 8, charges 15 in LA/Orange County hospice scams defrauding Medicare of over $50 million.
- Owners like Lolita Beronilla Minerd billed $9 million by paying kickbacks to enroll healthy people as “dying” patients.
- LA County, a national fraud hotspot billing 18% of U.S. hospice claims, highlights years of lax state enforcement under Newsom.
- Federal prosecutors criticize state failures from Biden era, signaling stronger Trump administration crackdown on waste.
Operation Never Say Die Targets Sham Hospices
Federal authorities in the Central District of California unsealed charges arresting eight individuals in “Operation Never Say Die.” Prosecutors targeted 15 defendants, including hospice owners, nurses, a chiropractor, and a psychologist. These operators ran sham facilities in Los Angeles and Orange Counties, defrauding Medicare of $50-60 million. They enrolled healthy recruits as terminally ill patients, paid kickbacks, and fabricated medical records to bill for nonexistent end-of-life care. U.S. Attorney Bill Essayli called the schemes egregious and brazen.
Key Defendants and Fraud Tactics Exposed
Lolita Beronilla Minerd, a licensed vocational nurse and owner of Topanga Hospice Care Inc., allegedly submitted over $9 million in false claims from 2020 to 2025. She paid kickbacks to marketers who recruited healthy individuals falsely certified as terminal. Gladwin and Amelou Gill operated a sham hospice under their daughter’s name despite prior barments, defrauding $7 million by forging records. These tactics diverted funds from legitimate patients, funding luxury lifestyles for fraudsters. IRS investigators tracked the financial trails.
LA County: Epicenter of Hospice Fraud
Los Angeles County accounts for 18% of national hospice billing, earning labels like “kingdom of fraud” from federal agents. FBI Assistant Director Akil Davis highlighted Southern California’s high-risk environment due to dense provider networks. Schemes exploited Medicare vulnerabilities, enrolling non-dying patients for daily care payments up to $1,000 each. This surge began post-2019 amid lax oversight, undermining trust in programs meant for the truly vulnerable elderly and raising costs for all taxpayers.
State efforts revoked over 280 licenses since Governor Newsom’s 2022 moratorium, with 300 more under review. Yet federal officials faulted California for persistent gaps, allowing barred operators to persist via proxies.
Federal Action Signals Shift Under Trump
U.S. Attorney Essayli prioritized these cases, stating fraud occurs too often in LA County. IRS Special Agent Tyler Hatcher described the operations as calculated attacks on vulnerable programs. This federal escalation, coordinated via the Vice President’s Task Force, overrides state limitations in Medicare cases. It exposes oversight failures from prior Biden-era policies, aligning with President Trump’s push to drain waste from federal programs. Taxpayers lose billions annually to such schemes, inflating premiums and taxes.
Conservatives see vindication in federal muscle against entrenched fraud, while shared bipartisan frustration grows over elites profiting from government bloat. Both sides demand accountability to restore fiscal integrity and protect the American Dream from corrupt insiders. Long-term, heightened scrutiny may deter scams but reveals urgent need for limited, efficient government.
Sources:
California hospice fraud investigation leads to arrests
Southern California Medicare fraud: 8 cases investigation
Multiple arrests in Operation Never Say Die targeting hospice healthcare fraud in CA
