Overview
- California’s attorney general, in a Thursday announcement, said Operation Skip Trace led to five arrests, charges against 21 suspects, searches at multiple Southern California sites, and seizures of more than $757,000 in cash and two handguns.
- Investigators say the network bought personal data for people living outside the state on the dark web, enrolled those identities in Medi‑Cal through Covered California, and used straw owners to buy 14 hospices that billed for care never provided.
- Prosecutors filed counts including conspiracy to commit health care fraud, health care fraud, money laundering, and identity theft, and officials said more suspects received notices to appear as the state reports recovering over $30 million.
- Federal agents last week announced eight arrests in separate Los Angeles‑area hospice and health‑care fraud cases tied to roughly $50 million, reflecting parallel federal prosecutions and ongoing Medicare oversight.
- Los Angeles County has an unusually dense cluster of hospice providers and California has a moratorium on new hospice licenses through January 2027, as state and federal officials dispute whether licensing or Medicare billing controls failed first.