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LA Hospice Fraud Takedown: 8 Arrests in $60M Medicare Scheme

Federal agents arrested eight individuals in Southern California, charging 15 total in "Operation Never Say Die," a major health care fraud takedown targeting $60 million in fraudulent Medicare hospice claims. Doctors, nurses, and hospice owners are among those implicated in schemes that provided sham end-of-life care to non-terminally ill patients. Read the full story on this massive crackdown.

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DOJ launches “Operation Never Say Die”: 8 arrested in sprawling LA hospice fraud probe, federal officials vow wider crackdown

The Department of Justice unveiled “Operation Never Say Die” on April 2, 2026, arresting eight and charging 15 in Southern California health-care fraud that allegedly cost Medicare $50–$60 million by enrolling non‑terminal patients in sham hospices and billing end‑of‑life care.

Key takeaways

  • Operation name: Operation Never Say Die — announced by DOJ and federal partners.
  • Scope: 8 arrested, 15 charged; alleged losses of roughly $50 million to nearly $60 million in false Medicare/insurer claims.
  • Primary fraud: Sham hospices recruited non‑terminal beneficiaries, paid them small amounts to pose as hospice patients, then billed Medicare for end‑of‑life services.
  • Notable defendants: Gladwin Gill and Amelou Gill — prosecutors allege their hospice submitted $5.2 million in claims and received $4M+.

Overview

Federal prosecutors announced a coordinated Southern California takedown on April 2, 2026, targeting widespread health‑care fraud centered on hospice operations and related billing schemes. Authorities say the conspiracy involved doctors, nurses, hospice owners and other providers who enrolled beneficiaries who were not terminally ill.

What federal officials said

First Assistant U.S. Attorney Bill Essayli, joined by FBI officials and CMS Director Dr. Mehmet Oz, described the operation as a major strike against a “high‑risk” fraud environment in Southern California. Officials said sham hospices paid beneficiaries roughly $300 a month plus vitamins to enroll and then billed Medicare for substantial hospice services that were not medically necessary.

“We’re going to review every single hospice in California to make sure that they’re all appropriate, and we hope to do that expeditiously. We’ll do it this year,” said Dr. Mehmet Oz at the press conference.

How the schemes worked

Prosecutors allege defendants ran sham hospice operations that signed up beneficiaries who were not terminally ill. The schemes reportedly included:

  • Direct payments to beneficiaries to enroll and pose as hospice patients.
  • Billing Medicare for hospice and end‑of‑life services that were not medically necessary.
  • Additional alleged frauds: fraudulent chiropractic and physical therapy billing and fake immigration medical exams tied to green‑card processing.

A specific case: the Gill hospice

Prosecutors singled out a Glendale operation run by Gladwin Gill (66), a psychologist from Covina, and his wife Amelou Gill, a registered nurse. The government alleges that hospice submitted more than $5.2 million in claims and Medicare paid out more than $4 million. The Gills were among those arrested; their attorney says Gladwin Gill denies the allegations and looks forward to his day in court.

Scope of the operation and coordination

Search and arrest warrants were executed across Southern California—from Covina to Lakewood, Anaheim, Glendale and other communities. The FBI Los Angeles Field Office coordinated the sweeps with the U.S. Attorney’s Office and CMS enforcement teams, supported by federal anti‑fraud task forces. Some defendants were extradited from Idaho and Washington.

Other alleged fraud and wider losses

Charging documents also describe large chiropractic and physical therapy billing schemes seeking more than $19 million from insurers and fraudulent immigration medical exams. Officials estimate the takedown targets roughly $50 million to nearly $60 million in false and fraudulent Medicare and insurer claims in the region.

Data checks and provider suspensions

In the days surrounding the takedown, CMS and enforcement partners suspended hundreds of providers. Local reports indicated provider suspensions in Los Angeles rose from about 70 to 221 in a short span. Investigators also flagged “license flipping”, where hospice licenses are moved or changed quickly to obscure patterns.

Controversy over allegations and public statements

The operation generated controversy after footage circulated of Dr. Oz speaking in front of an Armenian‑owned bakery in Van Nuys while discussing fraud. The business owner called the comments false and discriminatory; officials said none of the defendants charged were connected to that video. Dr. Oz defended his remarks, citing data and survival‑rate anomalies among supposed six‑month hospice patients as a red flag.

Political reactions

The takedown and public comments prompted reactions across the political spectrum. Federal anti‑fraud leaders emphasized stronger oversight, while California Governor Gavin Newsom criticized the federal approach and blamed federal program weaknesses for the problem, saying the federal administration bears responsibility.

Next steps and potential penalties

Defendants face federal charges that carry substantial prison terms if convicted—commonly ranging from 10 to 20 years depending on counts and loss amounts. Federal prosecutors signaled more enforcement actions, including nationwide audits of high‑billing hospices and additional clustered takedowns in coming months. Arraignments are scheduled in U.S. District Court in Los Angeles.

Implications

Economic: Tens of millions allegedly drained from Medicare and insurers, with potential nationwide implications for payments and compliance costs.

Social: Fraud in end‑of‑life care can erode public trust in hospice services and may cause families to delay needed care.

Practical for patients/providers: Beneficiaries should verify hospice licenses and ask clear prognosis/service questions; legitimate hospices should tighten documentation and prepare for audits.

Sources and further reading

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Aaron Yates

Aaron Yates is a senior national crime and justice reporter for Times Media Service, based in the Washington bureau. Yates covers criminal investigations, federal prosecutions, fraud and the courts, following law enforcement agencies and the legal issues surrounding major cases nationwide. Yates holds a master's degree in criminal justice and grew up in Bridgeport, Connecticut.

Write to Aaron