FBI Raids California Hospice With 97% Five‑Year Survival, Charging Owners in $7.45 Million Medicare Fraud Case
The FBI arrested Dr. Gladwin and psychologist Amelou Gill in an early‑morning SWAT raid Thursday in San Dimas, California, accusing the couple of fraudulently billing Medicare for $7.45 million through their company 626 Hospice, which operates as St. Francis Palliative Care and reportedly has a 97% five‑year survival rate—an extreme anomaly for true end‑of‑life care. U.S. Attorney Bill Essayli said the Gills are among 15 defendants being announced, with more than half tied to hospice schemes, and noted that some suspects are already in prison allegedly orchestrating fraud from behind bars. The case stems from a broader CBS‑documented pattern in Los Angeles County, where more than 700 of roughly 1,800 hospices triggered multiple red flags identified in a 2022 state audit, including very low patient counts, excessive billing, recycled staff across companies, clusters of dozens of hospices in a single office building, and high rates of supposedly terminal patients later discharged alive. Dr. Mehmet Oz, the Trump‑appointed official overseeing Medicare, and Vice President JD Vance—who now leads a GOP anti‑fraud initiative—have made Southern California hospice abuse a political flashpoint, while California officials argue the problem is national and say they have been running parallel state enforcement for years. With HHS’s inspector general estimating at least $198.1 million in suspect hospice payments nationwide, House Republicans on the Oversight Committee have opened an inquiry into "rampant hospice fraud" and are pressing Gov. Gavin Newsom over how his state allowed such a dense cluster of questionable providers to flourish.
📌 Key Facts
- The FBI arrested hospice owners Gladwin and Amelou Gill on April 2, 2026 in San Dimas, California, alleging $7.45 million in fraudulent Medicare hospice billings.
- Their company, 626 Hospice (doing business as St. Francis Palliative Care), reportedly showed a more than 97% five‑year survival rate, a key fraud red flag because hospice is intended for terminal patients.
- A CBS review of all ~1,800 hospices in Los Angeles County found more than 700 displayed multiple state‑identified fraud indicators, including shared staff, low patient counts, excessive billing and clusters of dozens of hospices in single office buildings.
- U.S. Attorney Bill Essayli says 15 defendants are being announced in this wave of enforcement, with over half tied to hospice fraud schemes, including individuals allegedly coordinating scams from prison.
- HHS’s Office of Inspector General estimated about $198.1 million in suspected hospice fraud nationally as of 2023, and House Republicans have launched an oversight investigation targeting alleged improper payments to Southern California hospices.
📊 Relevant Data
Hospice fraud investigations in California, particularly in Los Angeles County, have allegedly targeted Russian and Armenian communities, with claims of over $3.5 billion in fraudulent hospice and home health activity linked to the 'Russian-Armenian mafia'.
California Calls for Civil Rights Investigation into CMS’ Hospice Fraud Hunt — Hospice News
Armenians make up approximately 1.9% of the Los Angeles County population (188,511 out of about 9.8 million residents), yet are allegedly overrepresented in hospice fraud cases linked to ethnic organized crime.
Armenian Population in Los Angeles County, CA by City — Neilsberg
The average length of stay in legitimate hospice care in the United States is around 76 days, with about 90% of patients dying within six months of admission, contrasting sharply with the 97% five-year survival rate reported in the fraudulent case.
How Long Does The Average Hospice Patient Live? — Suncrest Care
Armenian immigration to California was largely driven by fleeing massacres in the Ottoman Empire, the Armenian Genocide, and the collapse of the Soviet Union, contributing to a significant community in Los Angeles that has been linked to some fraud cases.
History of Armenian Americans in Los Angeles — Wikipedia
📊 Analysis & Commentary (1)
"The City Journal commentary criticizes systemic hospice‑Medicare fraud exposed by an FBI raid in California, blaming regulatory failures and perverse payment incentives while urging tougher enforcement and careful, non‑partisan reforms."
📰 Source Timeline (1)
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