DOJ’s “Operation Never Say Die” Nets Eight in Southern California Hospice Fraud Probe; Officials Vow Sweeps, State Review
On April 2, 2026, the U.S. Department of Justice launched “Operation Never Say Die,” arresting eight people in Southern California for alleged hospice fraud that reportedly sought more than $50 million in intended losses to Medicare.
Key takeaways
- Eight arrested, 15 charged: A coordinated sweep targeted sham hospices accused of enrolling nonterminal beneficiaries and billing Medicare.
- Scale of alleged loss: Federal prosecutors say schemes sought over $50 million in intended losses to Medicare and other programs.
- Wide geographic reach: Arrests and search warrants were executed across Los Angeles County from Covina to Lakewood, with activity reported in Glendale, Van Nuys, Anaheim and Carson.
- State review announced: CMS leadership announced a statewide review of California hospice providers in response to the takedown.
Overview
Operation Never Say Die was unveiled April 2, 2026, by federal prosecutors and law enforcement as part of a coordinated takedown of purportedly fraudulent hospice operators and related billing schemes. Authorities described recruitment of beneficiaries who were not terminally ill, payments to those individuals, and millions in false Medicare claims.
Operation details and alleged schemes
Federal filings and prosecutors allege operators enrolled patients who were not terminally ill and paid recruits roughly $300 a month plus occasional vitamins to pose as hospice patients so businesses could bill Medicare for end-of-life care that was never needed. Authorities say Medicare paid millions in false claims.
The Department of Justice described the action as part of a larger anti-fraud effort led by the U.S. DOJ and coordinated with federal partners including the FBI and HHS.
Notable arrests and alleged losses
Among the charged are a Covina couple accused of running a Glendale hospice. Prosecutors say psychologist Gladwin Gill and his wife, registered nurse Amelou Gill, operated a hospice that submitted roughly $5.2 million in claims, with Medicare reportedly paying more than $4 million. Their attorney has denied the allegations and said the couple will contest the charges.
Investigators also uncovered schemes tied to chiropractic and physical therapy billing and alleged fake immigration medical exams performed by a nurse posing as a physician. One set of Carson-based companies is charged with seeking about $19 million through questionable billing from 2010 to 2023.
Scale, suspensions and patterns
Officials highlighted patterns that trigger anti-fraud monitoring: rapid license changes, unusually high billing rates, and clusters of provider suspensions. Local reporting cited a surge in provider suspensions and dozens of hospice license transfers in tight neighborhoods, raising concerns about systemic vulnerabilities.
Press conference remarks
“A kingdom of fraud” — First Assistant U.S. Attorney Bill Essayli described parts of Southern California as a “high-risk environment” and said prosecutors will seek long sentences for those convicted, emphasizing harm to taxpayers and vulnerable patients.
Statements from CMS and political responses
At the April 2 news event, CMS head Dr. Mehmet Oz announced a statewide review of California hospice providers: “We’re going to review every single hospice in California to make sure that they’re all appropriate…” He noted unusually high survival rates among hospice enrollees can be a red flag for fraud.
Governor Gavin Newsom criticized the federal action, accusing the federal government of shifting blame for problems in federal programs and making a political point about oversight and accountability.
Enforcement outlook and next steps
Federal officials said the April 2 operation is part of a larger wave of enforcement expected through 2026, with audits and reviews of high-billing hospices nationwide and potential additional takedowns. Several defendants appeared in U.S. District Court in the Central District of California; others face proceedings in other districts.
FBI leadership stressed that healthcare fraud losses are measured in the hundreds of billions annually and said protecting Medicare is a priority.
Implications for Paso Robles, California
Economic impact
- Taxpayer protection: Recovering funds and deterring scams can protect federal dollars that support seniors’ care in Paso Robles.
- Local provider scrutiny: A statewide CMS review could reach smaller hospice providers, increasing compliance scrutiny and short-term costs but potentially cleansing bad actors from the market.
Political consequences
- Federal enforcement message: Conservative readers may view the takedown as evidence of federal action to protect taxpayers, highlighted by the involvement of the U.S. DOJ and the JD Vance Anti-Fraud Task Force.
- State-federal tension: Governor Newsom’s remarks underscore potential friction over oversight, and local leaders may be asked to coordinate with investigators if cases touch the Central Coast.
Social effects and patient protections
Safeguarding seniors: Families and caregivers are urged to verify hospice credentials, ask about prognosis and care plans, and report suspicious behavior. Increased scrutiny aims to protect vulnerable patients exploited by fraudulent providers.
Practical applications for residents
- How to check a hospice: Confirm hospice licenses with the California Department of Public Health and use Medicare’s hospice compare tools; verify providers before enrollment.
- Reporting suspected fraud: Report concerns to the HHS Office of Inspector General, the FBI, or local U.S. Attorney’s offices to help investigators recover funds and protect patients.
Sources and documents
Reporting and the DOJ say findings are based on indictments, complaints and affidavits filed with the court and statements made at the April 2 press conference. Key public sources include:
- DOJ press release
- Fox 11 Los Angeles
- ABC7
- Press conference video (YouTube)
- Additional reporting and analysis (YouTube)
- Related coverage (YouTube)
- CBS12 (Newsom comments)
Reporting compiled from the Department of Justice and local coverage by Fox 11 Los Angeles and ABC7; press conference video and related reporting.
