Hospice Fraud in California: 8 Arrested, 15 Charged in Taxpayers $50 Million+ Theft
Federal authorities have been investigating for a year or more arrests occurred first week of April 2026.
By SyndicatedNews Tax Crime | SNN.BZ
Federal authorities announced on April 2, 2026, the arrests of eight individuals and charges against 15 total defendants in a sweeping crackdown on healthcare fraud centered in Southern California. Dubbed “Operation Never Say Die” and coordinated with the Vice President’s Task Force to Eliminate Fraud, the operation targeted sham hospice operations and related schemes that allegedly defrauded Medicare and other health programs of more than $50 million.
The defendants—including three nurses, a chiropractor, and a purported psychologist—are accused of running fraudulent hospice facilities that billed Medicare for end-of-life care provided to patients who were not terminally ill. Prosecutors allege the schemes involved recruiting healthy individuals, paying them illegal kickbacks (such as $300 per month in cash), and submitting millions in false claims for services that were either unnecessary or never provided.
Key Details of the Alleged Schemes
The fraud primarily involved hospice care centers in the Los Angeles area, including locations in Glendale, Artesia, Tarzana, and Simi Valley. Five of the nine separate fraud investigations focused on these hospices. Additional charges covered non-hospice schemes, such as defrauding a West Coast labor union’s health care plans (allegedly over $19 million in one case) and forging immigration medical documents.
Notable Defendants and Cases:
- Lolita Beronilla Minerd, 65 (a.k.a. “Lolita Beronilla Rice”), of Anaheim, a licensed vocational nurse: Owned and operated Topanga Hospice Care Inc. in Artesia. From July 2020 to April 2025, the company allegedly submitted more than $9.17 million in fraudulent hospice claims to Medicare, which paid out over $8.51 million. Minerd is accused of recruiting non-terminal beneficiaries (including approaching a couple at a supermarket), paying kickbacks, and providing unneeded items like nutritional shakes, vitamins, and wheelchairs. The facility had an 85% non-death discharge rate—nearly five times the national average. She faces health care fraud charges.
- Gladwin Gill, 66 (purported psychologist), and Amelou Gill, 70 (registered nurse), both of Covina: Owned and operated 626 Hospice Inc., doing business as St. Francis Palliative Care in Glendale. They allegedly paid illegal kickbacks for referrals of non-dying patients and submitted more than $5.2 million in fraudulent claims, with Medicare paying over $4 million. Proceeds were allegedly laundered for personal expenses including mortgages, car payments, international flights, restaurants, and bills. Both face health care fraud charges.
- Nita Almuete Paddit Palma, 76 (currently incarcerated in a federal prison in Seattle for a prior $106 million hospice fraud conviction), and Adolfo Cezar Catbagan, 68, of Glendale: Charged in an 11-count indictment with conspiracy to commit wire fraud and health care fraud. They allegedly operated three Glendale-based hospices (One Up Hospice Care Inc., Rosewood Hospice and Palliative Care Inc., and Advance Hospice and Palliative Care Inc.) while Palma was legally barred from doing so. Catbagan was arrested; Palma remains incarcerated.
Other arrested defendants include a licensed vocational nurse from Tarzana (Evelyn Tindimobuna, associated with Comfort Choice hospice, allegedly submitting over $3.8 million in claims with $3.4 million paid) and individuals linked to union benefit fraud and document forgery. One defendant was arrested in Idaho.
Official Reactions and Broader Context
First Assistant U.S. Attorney Bill Essayli emphasized a “zero-tolerance policy,” calling California the “kingdom of fraud.” FBI officials noted Southern California as a high-risk area for hospice fraud, with hundreds of billions lost nationally to healthcare fraud annually. HHS Inspector General T. March Bell stated the defendants “turned hospice care into a cash producing operation.” Additional quotes came from the Department of Labor Inspector General and IRS-CI, highlighting the impact on taxpayers, union workers, and vulnerable patients.
The operation aligns with a larger federal push. CMS Administrator Dr. Mehmet Oz noted that 221 hospices were targeted in the prior 10 weeks, with plans to review every hospice facility in California. State officials, including Gov. Gavin Newsom, reported revoking over 280 hospice licenses and investigating 300 providers. Red flags cited include high survival rates, common patient addresses, excessive billing, and low actual care provided.
Similar Cases Elsewhere
While this takedown is concentrated in Southern California, it is part of an ongoing national effort. For example, in March 2026, federal prosecutors in Northern California charged a foreign national in a separate $90 million Medicare Advantage fraud scheme involving false claims for medical equipment. Earlier actions have included charges against 25 Southern California defendants in schemes costing millions more.
All defendants are presumed innocent until proven guilty. Initial court appearances began April 2, 2026, in U.S. District Court in Los Angeles (with one in Idaho).
Sources for Full Details:
- U.S. Department of Justice Official Press Release: https://www.justice.gov/usao-cdca/pr/8-arrested-health-care-fraud-takedown-including-owners-hospices-billed-taxpayers
- CNN Coverage: https://www.cnn.com/2026/04/03/us/california-health-care-hospice-fraud
- Fox News Report: https://www.foxnews.com/us/healthy-patients-allegedly-lured-into-50m-hospice-scam-feds-expose-cash-kickbacks-fake-care
- Additional reporting from LA Times, CBS News, and HHS-OIG.
This case underscores ongoing vulnerabilities in Medicare hospice billing and the federal government’s intensified focus on fraud enforcement in 2026. Updates will follow as court proceedings advance.
