Tags: fbi | hospice | fraud | california | healthcare | taxpayers

FBI Busts $7.4 Million Hospice Fraud Scheme in Calif.

By    |   Friday, 03 April 2026 12:01 PM EDT

The FBI arrested a married couple accused of fraudulently billing Medicare for $7.45 million while running a hospice with a survival rate reported to be more than 97% after five years, in what federal officials say is part of a broader crackdown on rampant healthcare fraud.

The early-morning Thursday raid in San Dimas, California, targeted Gladwin and Amelou Gill, who co-owned 626 Hospice, operating as St. Francis Palliative Care.

Authorities said the unusually high survival rate at the hospice — a major red flag given hospice patients are typically terminally ill — helped trigger the investigation.

The arrests were among the first in a sweeping enforcement operation, with at least eight individuals charged so far and more expected.

Federal officials indicated the case is tied to a larger probe into widespread abuse of taxpayer-funded Medicare programs, particularly in Southern California.

According to prosecutors, the defendants allegedly billed millions for services that were either not medically necessary or never provided.

In some instances, fraudulent schemes have involved using false or stolen identities to collect reimbursements intended for legitimate end-of-life care.

The New York Post reported that Gladwin Gill, a psychiatrist, flaunted a lavish lifestyle on social media — posing with celebrities and attending high-profile events — even as authorities allege he and his wife were laundering Medicare funds to pay for luxury homes, cars, and international travel.

"Nothing's happened with fraud under the prior administration," U.S. Attorney Bill Essayli said, suggesting the crackdown reflects a renewed federal priority on accountability.

Essayli confirmed in a statement that the operation, dubbed "Never Say Die," involves more than a dozen defendants accused of collectively defrauding the system of over $50 million.

The enforcement push comes as congressional Republicans intensify scrutiny of hospice fraud, citing investigations that found hundreds of facilities in Los Angeles County alone displaying multiple warning signs of abuse, including excessive billing and questionable patient records.

More than 700 of roughly 1,800 hospices in the county triggered at least three red flags identified by state auditors, underscoring what lawmakers describe as a systemic problem costing taxpayers billions.

President Donald Trump has made combating fraud a central priority of his administration, naming Vice President JD Vance to lead a nationwide anti-fraud initiative.

In a Truth Social post on Friday, Trump warned that abuse of public funds has been "massive and pervasive," particularly in Democrat-led states, and said enforcement actions were already underway in Los Angeles.

Federal officials say a new task force will focus on improving coordination between agencies, strengthening oversight, and ensuring that taxpayer dollars are protected.

With arrests now underway and additional charges expected, authorities are signaling a more aggressive approach to rooting out fraud and holding those responsible accountable.

The Gills are expected to appear in federal court in Los Angeles, where the case is likely to be closely watched as a test of the administration's broader anti-fraud efforts.

Charlie McCarthy

Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.

© 2026 Newsmax. All rights reserved.


US
The FBI arrested a married couple accused of fraudulently billing Medicare for $7.45 million while running a hospice with a survival rate reported to be more than 97% after five years, in what federal officials say is part of a broader crackdown on rampant healthcare fraud.
fbi, hospice, fraud, california, healthcare, taxpayers
475
2026-01-03
Friday, 03 April 2026 12:01 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved