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California Charges 21 in Alleged $267 Million Medi‑Cal Hospice Fraud Using Stolen Identities
California Attorney General Rob Bonta announced charges against 21 people and the arrests of five in "Operation Skip Trace," alleging a $267 million Medi‑Cal hospice fraud in which suspects bought non‑California residents’ personal data on the dark web, enrolled them in Medi‑Cal, purchased 14 licensed hospice companies and submitted bills for hospice care that was never provided at largely paper‑only facilities. Authorities released body‑cam footage of residential raids and say the case is part of a broader statewide crackdown—investigators are probing hundreds of hospices for potential revocations as state officials, while defending California’s enforcement record, and federal anti‑fraud teams escalate scrutiny.
📌 Key Facts
- California Attorney General Rob Bonta announced state charges against 21 people and the arrests of five in 'Operation Skip Trace,' an alleged hospice‑fraud ring accused of stealing about $267 million from Medi‑Cal.
- Officials say defendants purchased non‑California residents' personal information on the dark web, enrolled those identities in Medi‑Cal, used straw owners to acquire 14 state‑licensed hospice companies, and billed Medi‑Cal for hospice services that were never provided at largely non‑existent facilities.
- State filings and reporting note the accused hospices were properly state‑licensed and approved to bill Medi‑Cal, indicating fraudsters exploited licensing and oversight gaps rather than operating entirely outside the system.
- California’s Department of Health Care Services is investigating more than 300 hospices for possible license revocation; a CBS analysis found over 700 of roughly 1,800 Los Angeles County hospices trigger multiple state‑defined fraud red flags.
- Law enforcement portrayed the operation as a paperwork‑based fraud network run from residences (body‑cam footage showed home raids), not a legitimate patient‑care system.
- Prosecutors and federal officials place the case in a broader national crackdown on hospice and health‑care fraud — part of heightened enforcement led by the federal anti‑fraud effort (including initiatives under VP JD Vance) and accompanying state–federal tensions.
- Related federal actions include Paul Richard Randall pleading guilty to wire fraud for a scheme that billed Medi‑Cal more than $269 million (paid over $178 million); authorities say he laundered proceeds to pay kickbacks, faces up to 30 years, and was accused of using the public health program as his 'personal piggy bank.'
- Regulatory scrutiny of high‑billing providers continues: CMS revoked Medicare billing privileges for Dr. Rajiv Bhuva after his name was tied to 2,791 hospice claims in 2024 generating $71.7 million across 126 hospices; another doctor, Domingo Barrientos, received about $90.3 million and was convicted in 2024 — California auditors flag physicians working for more than three hospices as a potential indicator of fraud.
📊 Relevant Data
California hospice providers have surged by approximately 1500% in recent years, while the senior population grew by only 40%, contributing to increased opportunities for fraud due to weak oversight and rapid expansion.
California's Hospice Explosion: 1500% Surge in Providers While Seniors Grew Just 40% — Facebook (Altas World News)
Federal hospice fraud investigations in California have been alleged to disproportionately target the Armenian-American community, prompting calls for a civil rights investigation into whether enforcement actions discriminate based on ethnicity.
California Calls for Civil Rights Investigation into CMS Hospice Fraud Hunt — Hospice News
Trump administration officials have attributed rampant hospice and home health fraud in California partly to organized crime groups including the 'Russian, Armenian mafia,' indicating potential ethnic overrepresentations in fraud perpetration.
Oz Says California's Not Fighting Health Care Fraud. Data Shows It's Part of a Larger Battle — U.S. News & World Report
📊 Analysis & Commentary (1)
California’s Biggest Fraud Magnet
"The piece criticizes California as a magnet for large‑scale hospice and health‑care fraud, argues federal CMS/DOJ crackdowns are justified, and calls for structural fixes—stronger audits, tighter rules and accountability—while warning against politicized or overbroad enforcement."
📰 Source Timeline (7)
Follow how coverage of this story developed over time
April 10, 2026
2:06 PM
Crackdown targets alleged hospice fraud in California tied to $267 million in charges
New information:
- CBS positions this as part of a broader, ongoing 'crackdown' on hospice fraud in California, emphasizing the systemic nature rather than a single ring.
- The segment underscores that prosecutors view the $267 million in alleged bogus Medi-Cal payments as part of 'sweeping hospice fraud' across the state, not just an isolated case.
- CBS highlights its own investigative role in surfacing patterns and red flags in California’s hospice sector that helped frame prosecutors’ current actions as part of a wider enforcement push.
April 09, 2026
11:27 PM
Body cam footage shows California police raiding homes in suspected hospice fraud case
New information:
- Body‑camera footage shows California police raiding homes tied to the suspected hospice‑fraud network.
- Authorities have filed charges against 21 specific suspects connected to what they describe as a $267 million hospice‑fraud case with no legitimate patients.
- CBS identifies the case visually and narratively as involving residential raids, underscoring that the alleged hospice network was effectively a paperwork operation rather than a real care system.
11:06 PM
Officials charge 21 people in hospice fraud exceeding $250 million
New information:
- Confirms that 21 individuals have been charged and 5 arrested so far in connection with the hospice fraud scheme.
- Details that defendants allegedly purchased personal information for non‑California residents on the dark web, enrolled them in Medi‑Cal, then bought 14 hospice companies and billed for hospice services under those stolen identities.
- Includes fresh quotes from AG Rob Bonta and Gov. Gavin Newsom defending California’s anti‑fraud record and positioning the case amid criticism from the Trump administration.
- States that under Bonta the state has filed 119 hospice‑related criminal cases and secured 51 convictions.
- Reiterates that the Trump administration’s national anti‑fraud push, led by VP JD Vance under a March executive order, has focused on Democratic‑led states but also requested information from GOP‑run Florida.
5:00 PM
California officials make arrests in LA hospice fraud crackdown
New information:
- California Attorney General Rob Bonta announced state charges against 21 suspects and the arrests of five people in 'Operation Skip Trace,' an alleged hospice fraud ring that prosecutors say stole $267 million from Medi-Cal.
- According to the California DOJ, the scheme involved buying non-California residents’ identities off the dark web, enrolling them in Medi-Cal, having straw owners acquire 14 licensed hospice companies, and billing for hospice services that were never provided at non-existent facilities.
- California’s Department of Health Care Services says it is actively investigating more than 300 hospices for possible license revocation, and a CBS News analysis found that over 700 of roughly 1,800 hospices in Los Angeles County trigger multiple state-defined fraud red flags.
- Officials detailed that all the hospice companies named in the state complaints were properly state-licensed and approved to bill Medi-Cal, underscoring how fraudsters exploited gaps in licensing and oversight rather than operating entirely in the shadows.
- State officials explicitly framed the crackdown as part of a tense federal–state environment in which a Republican-led federal government is publicly targeting fraud in Democratic states, while Bonta emphasized that health-care fraud crosses partisan lines and occurs in 'all 50 states, red and blue.'
1:00 AM
‘We're coming after you': Dr. Oz revokes Medicare access for LA doctor tied to $71M hospice billing
New information:
- CMS Administrator Dr. Mehmet Oz revoked California physician Dr. Rajiv Bhuva’s ability to bill Medicare in March 2026.
- Bhuva’s name was tied to 2,791 hospice claims in 2024 across 126 hospices (115 in Los Angeles County), generating $71.7 million in Medicare reimbursements.
- CBS/California audit benchmarks show an average California hospice doctor handles about 140 patients annually, highlighting how Bhuva’s volume far exceeded norms.
- California state auditors have warned that physicians or administrators working for more than three hospice providers at once is an indicator of potential fraud.
- Gov. Gavin Newsom’s office publicly framed the matter as a federal responsibility on Medicare billing while critics note the state’s role in licensing hospices that can enroll in Medicare.
- Another high‑billing California hospice doctor, Domingo Barrientos, received about $90.3 million in reimbursements and was convicted in 2024 of conspiracy to commit health‑care fraud.
April 08, 2026
5:02 PM
California fraud concerns ramp up as man pleads guilty to massive scheme using taxpayers as his 'piggy bank'
New information:
- Reports that Paul Richard Randall, 66, of Orange, California, pleaded guilty to one count of wire fraud for a scheme that billed Medi‑Cal more than $269 million and was paid over $178 million.
- Details that the scheme exploited a temporary Medi‑Cal rule change eliminating pre-approval requirements for certain expensive drugs, allowing use of a controlled pharmacy to submit massive claims for non-contracted drugs that were not medically necessary, not provided, or both.
- Describes laundering of proceeds through a third party to pay kickbacks and conceal transactions; notes Randall faces a statutory maximum of 30 years in federal prison with sentencing scheduled for August.
- Includes a quote from First Assistant U.S. Attorney Bill Essayli saying the defendant used a public health program as his "personal piggy bank" and links the case to President Trump’s 'war on fraud.'
- Notes that federal officials tie this case to a pattern of California health-care fraud, alongside "Operation Never Say Die" and an uptick in hospice and provider suspensions under Vice President JD Vance’s anti-fraud task force.
- Captures social media reaction, with conservative politicians and commentators branding California the "Fraud Capital" and calling Gov. Gavin Newsom’s system an "empire of fraud."