California Dismantles Massive $267M Hospice Fraud Scheme

California authorities have filed felony charges against 21 people who are accused of orchestrating a massive hospice fraud scheme that cost the state an estimated $267 million. The suspects allegedly bought personal identifying information for non-California residents from the dark web and used the stolen identities to enroll in Medi-Cal, the state's program that provides free or low-cost healthcare to low-income residents.

According to California Attorney General Rob Bonta, the suspects went on to purchase 14 hospice companies and used the stolen identities to fraudulently bill the state's health plan. This sophisticated fraud ring operated across Los Angeles and surrounding areas, taking advantage of vulnerable patients and lining their pockets at the expense of taxpayers.

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Hospice care is intended to provide comfort and support for patients nearing the end of their lives, but the suspects in this case are accused of exploiting the system for personal gain. By enrolling non-residents in Medi-Cal and billing the state for services that were never provided, they allegedly defrauded the healthcare system on a massive scale.