DOJ launches “Operation Never Say Die” — 8 arrested in sweeping Southern California Medicare hospice fraud probe
The U.S. Department of Justice announced “Operation Never Say Die” on April 2, 2026, leading to eight arrests and charges against 15 individuals in a Southern California Medicare hospice fraud probe alleging over $50 million in losses.
- Targeted crackdown: Federal agents hit sham hospices and related billing schemes across Southern California, prompting multiple arrests and warrants. See the DOJ release.
- Scope of alleged losses: Prosecutors estimate intended Medicare losses exceed $50 million — possibly up to $60 million — across hospice, chiropractic and other billing schemes.
- Allegations: Authorities say beneficiaries who were not terminally ill were recruited, paid to pose as hospice patients, and false claims were submitted; other schemes include forged immigration exams and fraudulent therapy billing.
What authorities say
First Assistant U.S. Attorney Bill Essayli led the news briefing with federal partners including the FBI’s Los Angeles office and the Centers for Medicare and Medicaid Services (CMS). In the press conference Essayli framed the operation as a “zero-tolerance policy” for schemes that exploit Medicare and prey on vulnerable people. For details, read the DOJ release.
CMS Director Dr. Mehmet Oz said the agency will review hospice providers across California: “We’re going to review every single hospice in California to make sure that they’re all appropriate, and we hope to do that expeditiously. We’ll do it this year.” His remarks and related reporting are available via Fox 11 Los Angeles coverage.
“The operation shows federal resolve to stop schemes that exploit Medicare and harm vulnerable patients,” — First Assistant U.S. Attorney Bill Essayli (DOJ).
The arrests and alleged schemes
Federal agents executed search and arrest warrants across multiple Southern California cities, including Covina, Glendale, Anaheim, Lakewood, Carson and Huntington Beach. Arrested defendants include doctors, nurses, a chiropractor and a psychologist. Reporting summarized the raids and arrests; see Fox 11 and ABC7 Los Angeles coverage.
Notable defendants: Among those arrested were Gladwin Gill, 66, a psychologist, and his wife Amelou Gill, a registered nurse. Prosecutors say the couple ran a Glendale hospice that submitted more than $5.2 million in claims, with Medicare paying out more than $4 million. The defendant’s attorney has said his client denies the charges and will contest them in court (see DOJ).
Prosecutors also detailed additional schemes: businesses that billed insurers for more than $19 million in chiropractic and physical therapy services from 2010 through 2023 (including companies named Ohana Wellness Center and One Life Acupuncture), and an immigration-related fraud scheme in which a nurse allegedly forged medical exams for green-card applicants (DOJ release).
Allegations about hospice survival rates and the Van Nuys controversy
Dr. Oz highlighted unusually high survival rates at some hospice providers as a key fraud indicator, noting that survival rates over 50% for a population expected to die within six months are problematic. He suggested that roughly half of Los Angeles County hospices could be suspect based on the data and announced a nationwide moratorium on certain equipment. See coverage from Fox 11.
Oz’s comments intersected with controversy over a video filmed at an Armenian-owned Van Nuys bakery; the bakery owner called the statements false and discriminatory. Essayli confirmed none of the defendants named in the April 2 arrests were connected to that video. For additional context see Fox 11 and ABC7.
State response and political friction
California Gov. Gavin Newsom pushed back against implications that the state had not addressed hospice fraud, criticizing the federal administration in public remarks. The exchange underscores political tensions that often follow high-profile federal enforcement actions; see reporting via CBS12.
Scope and penalties
Prosecutors estimate intended losses exceed $50 million and could approach $60 million. Charges include health care fraud and wire fraud, with potential maximum penalties of up to 10 years for health care fraud and up to 20 years for wire fraud. Some defendants have been arraigned in federal court in Los Angeles; others will be summoned or extradited.
Larger enforcement push
The takedown was coordinated with broader federal anti-fraud task forces and is part of planned clustered takedowns and audits through 2026. CMS said it will expand reviews, audits and suspensions of suspicious hospice licenses after seeing spikes in suspended providers and license “flipping” in areas like Van Nuys (Fox 11).
Implications for Huntington Beach
Economic impact: Taxpayers in Huntington Beach and Orange County could benefit if investigators recover improper Medicare payments and deter future fraud. However, increased audits can slow payments to legitimate providers and raise administrative costs.
Political consequences: The operation elevates federal prosecutors and CMS in local enforcement debates; some residents will welcome aggressive action to protect federal funds, while others may see federal oversight as overreach.
Social effects & practical advice: Fraud schemes posing as hospice care damage public trust. Families should verify hospice credentials, ask for plain-language explanations of hospice criteria, obtain copies of enrollment and certification paperwork, and report suspected fraud to federal oversight bodies like the U.S. Department of Health and Human Services Office of Inspector General or local federal prosecutors.
Court proceedings and next steps
Arraignments are underway in federal court in Los Angeles. Some defendants were extradited from Idaho and Washington to face charges. Prosecutors say more audits and targeted takedowns are planned for 2026, and authorities will continue to examine clusters of suspicious hospice licenses and billing patterns (Fox 11; DOJ).
