FBI Arrests Eight in $60 Million LA County Hospice Fraud Crackdown 'Operation Never Say Die'

The FBI and federal prosecutors have launched a sweeping crackdown on hospice fraud in Southern California, arresting eight suspects and targeting a total of 15 defendants in connection with alleged schemes totaling $60 million. Dubbed 'Operation Never Say Die,' the multi-agency action saw federal agents execute arrests and search warrants across Los Angeles County and as far as Coeur d'Alene, Idaho, signaling a major escalation in enforcement against healthcare fraud in the region.

First Assistant U.S. Attorney Bill Essayli announced the arrests, stating federal agents 'descended on fraudsters throughout Southern California.' The charges stem from nine separate healthcare fraud investigations focused on hospice services and other related schemes. The scale of the alleged fraud—$60 million siphoned from Medicaid—highlights systemic vulnerabilities in hospice care billing and oversight, with prosecutors alleging a coordinated effort to exploit the program.

The operation places intense scrutiny on the hospice industry in Los Angeles County, a sector already under pressure for compliance failures. The cross-state arrests indicate investigators are pursuing networks that may operate beyond California's borders. This level of coordinated federal action typically precedes further indictments and increased regulatory pressure, potentially leading to stricter billing audits and eligibility verification for hospice providers across the state.