Major Medicare Fraud Scheme Uncovered in Los Angeles
Federal authorities in Los Angeles have charged 15 individuals in connection with a Medicare fraud scheme valued at approximately $60 million, according to the Department of Justice. The operation, dubbed "Operation Never Say Die," focused on dismantling organizations allegedly running fraudulent hospice services in Los Angeles and Orange Counties.
The initiative was spearheaded by the Vice President’s Task Force to Eliminate Fraud in conjunction with the FBI. It targeted entities accused of posing as legitimate facilities to wrongfully bill Medicare. Investigators allege these operations recruited individuals under false pretenses, misappropriating Medicare funds for personal gains like luxury living expenses and real estate investments.
Among those charged is Lolita Beronilla Minerd, a licensed vocational nurse affiliated with Topanga Hospice Care Inc. She is alleged to have fraudulently billed Medicare over $9 million by enrolling healthy individuals as hospice patients, offering financial incentives as recruitment tactics.
Another case involves Nita Almuete Paddit Palma and her husband Adolfo Catbagan, who allegedly managed multiple hospice facilities despite previous legal restrictions. Their fraudulent activities are claimed to have resulted in $4.8 million in wrongful billings, devoid of actual end-of-life care provision.
The investigation extends to other offenders like Amelou and Gladwin Gill, who reportedly engaged in illegal patient referral payments, diverting over $5.2 million from Medicare. Similarly, Sonia Griffen allegedly filed nearly $5 million in unfounded claims, securing around $2.5 million through system manipulation.
Authorities identified a group accused of falsifying claims amounting to $19 million, particularly targeting labor union health provisions. Additionally, a South Korean national faces charges related to falsifying medical examination documents necessary for immigration purposes.
Bill Essayli, First Assistant U.S. Attorney, emphasized that investigations will extend beyond direct perpetrators, targeting everyone involved, from recruiters to those responsible for false certifications. The defendants are slated to appear in U.S. District Court in Los Angeles, with asset recovery proceedings underway. Continued investigations suggest further arrests as authorities monitor potential fraudulent activities.