Healthy patients allegedly lured into $50M hospice scam as feds expose cash kickbacks and fake care

A sweeping national takedown successful Los Angeles has exposed what prosecutors accidental is simply a brazen, multimillion-dollar strategy that turned end-of-life attraction into a currency grab, allegedly utilizing radical who weren’t adjacent dying to rip disconnected taxpayers retired of much than $50 million.

Eight defendants, including nurses, a chiropractor and a purported psychologist, were arrested successful a crackdown targeting sham hospice operations and fraudulent aesculapian billing schemes, according to the Justice Department.

At the halfway of the case, hospice companies are accused of signing up steadfast patients, paying kickbacks and pocketing millions from Medicare for attraction that was ne'er needed oregon ne'er provided.

"We are enforcing a zero-tolerance argumentation for criminals who defraud American taxpayers," First Assistant U.S. Attorney Bill Essayli said Thursday. "The defendants arrested this greeting who are charged with stealing millions of dollars of wellness attraction benefits got caught and present look years successful national prison."

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Mugshots of aggregate suspects charged successful a $50 cardinal wellness attraction fraud strategy tied to sham hospice operations successful Los Angeles (FBI)

One of the astir striking allegations involves an Anaheim nurse, Lolita Minerd, who prosecutors accidental ran a hospice concern that recruited patients astatine a market, promising them escaped services and $300 a period successful currency to enroll.

The mates who signed up weren’t terminally ill, thing their doc confirmed, but were allegedly paid $600 a period successful envelopes of currency portion Medicare was billed for end-of-life care.

Minerd’s institution unsocial submitted much than $9.1 cardinal successful claims, collecting astir $8.5 cardinal from taxpayers, authorities said.

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Federal agents hole for a coordinated cognition targeting a multimillion-dollar wellness attraction fraud network (FBI)

Investigators accidental the signifier repeated crossed aggregate cases, patients who weren’t dying were enrolled successful hospice, marketers were paid amerciable kickbacks and providers cashed successful portion delivering small oregon nary morganatic care.

"The defendants charged contiguous allegedly turned hospice attraction into a currency producing operation, resulting successful much than $50 cardinal successful losses to taxpayers," said HHS Inspector General T. March Bell. "Anyone who seeks to weaponize hospice attraction to bilk Medicare should expect to beryllium held accountable."

In different case, a Covina couple, a caregiver and a self-described psychologist, allegedly pulled successful much than $4 cardinal from Medicare and spent it connected mortgages, planetary travel, restaurants and idiosyncratic bills.

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Federal agents hole for a coordinated cognition targeting a multimillion-dollar wellness attraction fraud network (FBI)

Federal prosecutors accidental 1 repetition offender went adjacent further, allegedly moving aggregate fraudulent hospice companies portion already facing charges successful a abstracted lawsuit and legally barred from operating specified businesses.

Beyond hospice fraud, authorities accidental the takedown uncovered a $19 cardinal strategy targeting a labour union’s wellness plan, wherever defendants allegedly billed for fake oregon unnecessary chiropractic and therapy services and adjacent fabricated diligent records.

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"Today’s arrests are different decisive onslaught successful our warfare connected fraud," said Department of Labor Inspector General Anthony D’Esposito. "If you bargain from workers oregon taxpayers, your clip is up. We volition find you, analyse you and clasp you accountable."

Officials accidental Southern California has go a hotbed for hospice-related scams and different wellness attraction fraud schemes.

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"The Southern California portion is simply a high-risk situation for hospice-related and galore different forms of wellness attraction fraud," said Akil Davis, adjunct manager successful complaint of the FBI’s Los Angeles Field Office. He noted the U.S. loses hundreds of billions of dollars annually to wellness attraction fraud, driving up premiums, co-payments and taxes for Americans.

Authorities accidental the crackdown, dubbed "Operation Never Say Die," is portion of a broader propulsion to dismantle fraud networks exploiting some taxpayers and susceptible patients.

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"Health attraction fraud undermines national programs, threatens nationalist spot and diverts resources distant from morganatic diligent care," said IRS Criminal Investigation Special Agent successful Charge Tyler Hatcher. "Those who nett astatine the disbursal of taxpayers and patients volition beryllium held accountable."

Officials besides warned the harm goes acold beyond dollars.

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"When worker payment plans go targets for fraud, it’s not conscionable the plans that are hurt, mundane moving Americans, their families and their communities are hurt," said Robert Prunty of the Department of Labor.

If convicted, galore of the defendants look up to 10 years successful national prison, with immoderate charges carrying adjacent longer sentences.