Multiple California conspirators pleaded guilty to Medicare fraud and money laundering totaling approximately $16 million through sham hospice companies that submitted fraudulent claims for services that were either unnecessary or not provided.

California Sham Hospice Network — $16M Medicare Fraud and Money Laundering (2025)

Outcome: Multiple California conspirators pleaded guilty to defrauding Medicare of approximately $16 million through a network of sham hospice companies that submitted false claims for hospice services, then laundered the proceeds through money laundering schemes.

A multi-year scheme operated through California involved the enrollment of "sham hospice companies" with Medicare — fraudulent entities designed solely to generate false Medicare claims rather than provide legitimate hospice care. The conspirators submitted claims for hospice services that were either medically unnecessary or simply not provided. The fraudulent Medicare proceeds were then laundered through money laundering schemes.

Multiple California residents pleaded guilty in July 2025. One defendant pleaded guilty on July 14, 2025; two others pleaded guilty on July 8, 2025. The total fraud amount was approximately $16 million in Medicare claims. The fraud ran as "part of a multi-year scheme," indicating sustained fraudulent billing operations.

The U.S. Attorney's Office for the Central District of California and the DOJ handled prosecution. This case reflects the ongoing problem of fraudulent hospice enrollment in California — a pattern that has generated multiple federal enforcement actions.

Primary Source: OIG Enforcement Record (Two Pleas)