Federal sweep in Los Angeles arrests doctors, nurses in Southern California hospice fraud probe “Operation Never Say Die”
Eight medical professionals were arrested April 2, 2026, in Southern California as part of “Operation Never Say Die,” a DOJ-led sweep charging 15 people over health-care fraud schemes that allegedly stole more than $50 million from Medicare through sham hospices.
- Multiagency takedown: The April 2 operation arrested eight people and charged 15 defendants in schemes prosecutors say exceeded $50 million — see the U.S. Department of Justice press release and ABC7 Los Angeles coverage.
- How the fraud worked: Prosecutors say sham hospices recruited non-terminal beneficiaries, paid them to pose as hospice patients, submitted false Medicare claims and laundered proceeds for personal expenses (U.S. Department of Justice press release).
- Notable arrests: A Covina couple — Gladwin Gill and nurse Amelou Gill — are accused of running a Glendale hospice that billed over $5.2 million and received more than $4 million; their attorney denies the allegations (ABC7 Los Angeles coverage).
Takedown and how the schemes worked
Federal prosecutors described a coordinated set of schemes targeting Medicare and private plans across Los Angeles and nearby counties. Authorities served search and arrest warrants from Covina to Lakewood in a multiagency operation including the FBI, HHS-OIG, IRS Criminal Investigation and Department of Labor inspector general offices (U.S. Department of Justice press release).
Investigators allege sham hospices enrolled beneficiaries who were not terminally ill. Many were recruited with offers of cash or other payments and instructed to sign forms claiming they had six months or less to live — the standard hospice eligibility — when that was false. Once enrolled, hospices allegedly billed Medicare for unnecessary hospice services and durable medical equipment, then laundered proceeds to pay mortgages, flights and other personal expenses (press conference video).
“If you’ve got 100% or near survival, certainly if you’ve got a survival over 50% for a population that’s supposed to have passed in six months, you’ve got a problem,” — Dr. Mehmet Oz, CMS
Prosecutors cited one hospice with more than 70% survivor discharge among 22 interviewed beneficiaries — a clear red flag, as investigators say none of those 22 were terminally ill (press conference video).
Scope of charges and related schemes
The enforcement action named 15 defendants across linked investigations. In addition to hospice fraud, prosecutors disclosed connected conspiracies:
- Private health-plan fraud: In USA v. Aulava-Moala et al., four South Bay defendants — including a chiropractor — are accused of submitting about $19 million in false claims for unnecessary chiropractic and therapy services to union plans (DOJ).
- Immigration-related fraud: A nurse is charged with forging green-card medical exams and claiming to have performed tests she did not administer (U.S. Department of Justice press release).
- Additional health-care fraud counts: Prosecutors filed other charges tied to conspiracies spanning Medicare and private plans (DOJ).
Press conference: officials, claims and controversy
First Assistant U.S. Attorney Bill Essayli led the April 2 press conference, warning that Medicare had paid “hundreds of millions” on false claims tied to organized fraud in high‑risk regions. He highlighted the Covina couple’s hospice as an example (press conference video).
CMS head Dr. Mehmet Oz said CMS will “review every single hospice in California” this year and cited survival rates as an audit marker. Oz’s remarks drew criticism after footage showed him near a Van Nuys bakery while discussing suspected fraud; the bakery owner called the allegations false and discriminatory and officials confirmed the bakery was not linked to the defendants named in the sweep (additional press video).
Political reactions and context
The takedown comes amid broader scrutiny of federal health‑care programs. California Gov. Gavin Newsom defended the state’s actions and blamed prior federal administration weaknesses, while national commentators urged tighter controls and oversight (regional reporting on political reaction).
Court schedule and defense response
Most defendants made initial federal court appearances in Los Angeles on April 2; some proceedings were set in other districts and additional summonses were expected. The Gills’ attorney told local media his clients deny the allegations and will defend themselves. As always, the government’s statements are allegations that must be proven at trial (U.S. Department of Justice press release; ABC7 Los Angeles coverage).
Investigative partners and next steps
The sweep involved investigators from the FBI, HHS‑OIG, IRS‑CI, Department of Labor OIG and others. Officials said the operation is part of a national effort to target program fraud and followed months of financial and patient‑level investigation. CMS pledged a broad review of California hospices this year (U.S. Department of Justice press release).
Implications for The World
Economic impact: Large-scale fraud erodes public trust and diverts taxpayer funds from patient care. It may prompt tighter audits and higher administrative costs for public programs.
Political consequences: The takedown may increase calls for federal oversight of Medicare contractors, spur hearings and influence international comparisons of health spending oversight.
Social effects and cultural relevance: Hospice fraud undermines confidence in end‑of‑life care and may disproportionately harm vulnerable and immigrant communities; clear communication and cultural competence are vital to prevent abuse and stigma.
Practical guidance: Patients should ask for documented medical assessments and independent attestations of hospice eligibility. Providers must keep strict admission records and transparent billing. Regulators can use survival and discharge data as early warning signs; CMS’s pledge to review California hospices is a potential model for other jurisdictions.
Sources and reporting
- U.S. Department of Justice press release
- ABC7 Los Angeles coverage
- Press conference video
- Additional press video
- Regional reporting on political reaction
Primary reporting in this article draws on official DOJ materials, local news coverage and press conference video. All factual assertions above preserve original source attributions and links.
