Inside the $60M takedown: 8 Southern California cases under Medicare fraud investigation

LOS ANGELES - In a massive federal sweep dubbed "Operation Never Say Die," the Department of Justice has unsealed charges against 15 individuals—including eight local arrests—alleging a staggering $60 million in fraudulent Medicare billings across Southern California. 

The crackdown, coordinated by the Vice President’s Task Force to Eliminate Fraud and the FBI, specifically targeted "sham" hospices in Los Angeles and Orange Counties. These facilities allegedly recruited healthy "patients" with monthly kickbacks to pose as terminally ill, draining taxpayer funds to finance luxury lifestyles and private real estate.

What we know:

Federal agents fanned out across the Southland this week to dismantle what prosecutors are calling a "kingdom of fraud," where the business of dying was used to fuel a multimillion-dollar criminal enterprise. 

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From quiet suburban homes in Covina to medical plazas in Glendale, the DOJ’s latest takedown has exposed a network of nurses, doctors, and "patient recruiters" who allegedly treated the Medicare system as a personal ATM. 

By billing for end-of-life care for people who were far from death, these local operators allegedly exploited the safety net designed to protect our most vulnerable citizens in their final hours.

Local perspective:

Here are the 8 local cases being investigated by the DOJ for healthcare fraud:

$9 Million "Artesia" Scheme

Lolita Beronilla Minerd, a licensed vocational nurse, allegedly operated Topanga Hospice Care Inc. as a front for fraud. 

Between 2020 and 2025, she is accused of billing Medicare for over $9 million in services for "dying" patients who were actually healthy. 

An investigation revealed she reportedly paid cash kickbacks—sometimes in envelopes at local markets—to "recruit" patients into the program.

Glendale "Ghost" Facilities

Nita Almuete Paddit Palma and her husband, Adolfo Catbagan, are accused of running three separate Glendale-based hospice facilities: One Up, Rosewood, and Advance Hospice. 

Despite Palma being legally barred from the industry due to prior convictions, the couple allegedly billed $4.8 million for patients who were not terminally ill and, in many cases, never even saw a doctor.

Anaheim Family Fraud

Amelou and Gladwin Gill, a married couple who co-owned 626 Hospice and St. Francis Palliative Care, allegedly siphoned over $5.2 million from Medicare. 

The DOJ claims they paid illegal kickbacks for patient referrals and used the proceeds to fund a lavish lifestyle, including international flights, luxury car payments, and mortgage installments on their Covina home.

"Bee Well" Labor Union Scam

Sonia Griffen of Lakewood is charged with defrauding the ILWU-PMA health care plan through her company, Bee Well Holistic Wellness Center. 

She allegedly submitted nearly $5 million in fraudulent claims for "holistic" services that were either medically unnecessary or never provided, netting her nearly $2.5 million in illegal payments.

$19 Million Chiropractic Ring

Federal authorities targeted a group of four individuals accused of submitting over $19 million in false claims to private health insurers. 

The scheme allegedly involved charging for chiropractic and physical therapy services that were entirely fabricated, specifically targeting labor union health plans to drain their resources.

Immigration Medical Forgery

In a unique branch of the investigation, a South Korean national was arrested for allegedly posing as a doctor or nurse. 

This individual is accused of forging the official medical exam documents required for immigrants to adjust their status or gain permanent residency, charging vulnerable applicants for "exams" that held no legal weight.

Simi Valley "Phantom" Patient Case

Similar to the Artesia case, a facility in Simi Valley is under fire for billing Medicare for a high volume of patients who lived far from the facility and shared the same home addresses—a major red flag for "patient dumping" or recruitment. 

This case highlights how recruiters allegedly targeted the elderly with promises of free groceries or "monthly stipends" to sign up for unnecessary hospice care.

Tarzana "Survival" Scandal

Investigators flagged a Tarzana-based hospice where the "survival rate" of patients was over 80%. 

Since hospice is intended for those with six months or less to live, this statistical anomaly led the DOJ to uncover a scheme where healthy individuals were being classified as terminal to trigger massive Medicare payouts.

Big picture view:

Operation Never Say Die represents a decisive strike in the federal "War on Fraud," a massive initiative led by the Vice President’s Task Force to dismantle systemic corruption within the healthcare industry. 

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By leveraging AI-driven data modeling and a "prevention-first" strategy, authorities have already suspended over 200 California providers this year, shifting away from slow-moving litigation toward immediate payment freezes for suspected "phantom" facilities. 

This coordinated crackdown by the DOJ, FBI, and CMS aims to shut down the Southern California "hot zones" of hospice fraud, sending a clear message that the government is no longer just chasing individual scammers but is actively working to dismantle the entire criminal infrastructure of healthcare exploitation.

What they're saying:

First Assistant U.S. Attorney Bill Essayli stated, "This is not a one-off raid. We are looking at the recruiters, the doctors who signed the fake certifications, and the 'ghost' owners behind the scenes."

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Meanwhile, CMS Administrator Dr. Mehmet Oz has pledged a "zero-tolerance" review of California's hospice industry, noting that the agency is moving from a "pay-and-chase" model to a "prevention-first" model.

What's next:

The eight arrested defendants are currently making initial appearances in U.S. District Court in downtown Los Angeles. 

As the legal process unfolds, the DOJ’s Asset Forfeiture and Recovery Section is working to seize luxury vehicles, property, and bank accounts linked to the $60 million in fraudulent proceeds.

Authorities have hinted that more arrests are likely as they follow the paper trail of illegal kickbacks and forged medical certifications.