Federal “Operation Never Say Die” unearths massive Southern California hospice fraud; eight arrested, 15 charged in Medicare scheme
Federal and local authorities announced ‘Operation Never Say Die’ on April 2, 2026, alleging sham hospices in Southern California billed Medicare for $50–60 million by enrolling non-terminal patients and submitting false end-of-life claims, and prosecutors arrested eight individuals.
Key takeaways
- Coordinated takedown: Federal, state and local law enforcement executed search and arrest warrants across Southern California, including Covina, Glendale, Lakewood, Van Nuys and Anaheim.
- Scale of alleged fraud: Prosecutors say sham hospices billed Medicare an estimated $50 million to $60 million, with eight arrests and 15 defendants charged in federal court.
- Notable defendants & schemes: Psychologist Gladwin Gill and nurse Amelou Gill face allegations tied to a Glendale hospice that submitted about $5.2 million in claims; other schemes included a multimillion-dollar chiropractic billing case and immigration medical form fraud.
- Federal response: CMS announced an aggressive review of California hospices; officials called this the first of several nationwide cluster operations planned for 2026.
Overview
On April 2, 2026, federal authorities announced Operation Never Say Die, a coordinated enforcement action targeting alleged hospice and related health-care fraud across Southern California. Officials say sham hospice providers and allied schemes enrolled beneficiaries who were not terminally ill, paid them small sums and provided minimal services to enable extensive Medicare billing.
Arrests and charges
Authorities arrested eight individuals and charged 15 defendants in the U.S. District Court for the Central District of California. Some counts carry maximum penalties of up to 10 years for health care fraud and 20 years for wire fraud. For details from the Department of Justice, see the U.S. Department of Justice press release.
Scope and alleged losses
Prosecutors estimate the schemes billed Medicare approximately $50 million to $60 million. Tactics described by officials include enrolling beneficiaries who were not terminally ill, paying them modest amounts or vitamins to simulate hospice status, and using “phantom” facilities to submit end-of-life claims.
Local reporting and network coverage describe multiple related fraud types in the takedown: phantom hospices, a chiropractic billing scheme that reportedly generated about $19 million in claims over several years, and immigration medical form fraud by a nurse posing as a doctor. See coverage from FOX 11 Los Angeles report and ABC7 Los Angeles coverage.
Notable defendants
Psychologist Gladwin Gill, 66, and his wife Amelou Gill, a registered nurse, were arrested and accused of operating a Glendale hospice. Authorities allege that facility submitted about $5.2 million in claims and received more than $4 million in Medicare payments. Gill’s attorney has denied the charges and said he looks forward to his day in court. See reporting at ABC7 and the DOJ press release.
What prosecutors said at the press conference
First Assistant U.S. Attorney Bill Essayli called the operation a “major health care fraud takedown” and said defendants “stole millions,” describing parts of Southern California as a “kingdom of fraud” and a “high-risk environment” for hospice scams.
He said the accused allegedly profited by enrolling Medicare beneficiaries who were not eligible for hospice care and submitting false claims. Watch the press conference video (excerpt with Bill Essayli and CMS Administrator Dr. Mehmet Oz) for comments and excerpts.
Dr. Mehmet Oz and CMS actions
CMS Administrator Dr. Mehmet Oz joined officials at the press conference and announced CMS would “review every single hospice in California” this year to check for inappropriate services and protect taxpayers. He highlighted suspicious survival rates — unusually high survival among patients certified with six months or less to live — as a fraud red flag. See coverage at FOX 11 Los Angeles and ABC7.
Oz also addressed a widely circulated video of him standing in front of an Armenian-owned bakery in Van Nuys while discussing clusters of fraud; prosecutors emphasized that none of the charged defendants are connected to that business. Oz said he was presenting data-driven observations about concentrations of fraud but did not provide specific evidence tying the bakery or its owner to the charged cases.
Law enforcement partners and task force work
The FBI and Department of Health and Human Services investigators participated in the raids and arrests. Officials said the takedown is part of a broader crackdown on health care fraud led in part by a federal anti-fraud task force, which the reporting linked to Vice President J.D. Vance’s Anti-Fraud Task Force. Authorities indicated more cluster operations are planned nationwide during 2026 to recover taxpayer funds and deter similar schemes. See additional reporting at FOX 11 Los Angeles and the DOJ press release.
State reaction and political pushback
California Gov. Gavin Newsom criticized the federal announcement and blamed federal programs in his remarks: “The Trump Administration — home to the biggest fraudsters on Earth — is trying to blame California for issues with THEIR federal programs,” according to local coverage. Federal officials defended the law-enforcement action as necessary to protect Medicare dollars and seniors. See coverage at ABC7 and WACH.
Administrative actions and suspensions
Officials reported a sharp rise in provider suspensions tied to CMS and Medicare oversight. Local reporting cited 221 Los Angeles-area providers suspended — up from roughly 70 suspensions the prior week — as regulators moved to cut off payments to suspicious operations while investigations continue. See FOX 11 Los Angeles for local detail.
Court filings and next steps
Charges were filed in the U.S. District Court for the Central District of California. Arraignments are scheduled to begin in Los Angeles federal court in the coming days. Defendants include owners and operators of hospice businesses, a chiropractor, a psychologist and nurses; some charged individuals reside outside California and were summonsed from Idaho and Washington. See the DOJ press release and local coverage at ABC7.
Implications for Utah
Economic impact: Utah taxpayers, like those nationwide, ultimately share the cost when Medicare funds are stolen. Officials in Utah will watch whether recoveries reduce pressure on the Medicare trust fund and affect audits or rate adjustments.
Local oversight: Utah regulators and providers should expect heightened federal scrutiny and potential new CMS guidance. Local hospice programs may face deeper audits or credential checks as a response to the California review; providers should review documentation and certification practices now.
Political and community effects: The takedown and ensuing political back-and-forth highlight debates relevant to Utah’s audiences — balancing taxpayer protection, accountability, and ensuring federal enforcement addresses nationwide fraud networks. Utah’s congressional delegation may press for continued investigations and legislative changes to tighten hospice enrollment rules.
Practical steps: Utah patients and families should verify hospice enrollment details and request clear documentation. Providers should audit patient eligibility files, physician certifications and nursing notes, and train staff to spot red flags such as unexpected recruitment of beneficiaries or third-party referral payments. See CMS remarks and reporting at FOX 11 Los Angeles and the DOJ release.
Arraignments and continuing coverage
Authorities said this enforcement action is the first of several planned cluster operations in 2026. Arraignments in the Central District of California will proceed in the coming days, and reporters and public officials in Utah and nationwide will monitor outcomes and any resulting federal rule changes or audits that could affect providers and patients. For official filings and ongoing updates, see the DOJ press release and continuing local coverage at ABC7 and FOX 11 Los Angeles.
