Seven Arrested in Hospice Fraud Investigation

Seven individuals have been taken into custody for their involvement in a hospice fraud scandal totaling $3.2 million. This development has intensified calls for California officials to tackle mismanagement of public funds more effectively.

Attorney General Rob Bonta emphasized the importance of transparency, stating, “We want Californians to know what we are working on. To those committing fraud: We are watching, we are investigating, and we will take action.”

The felony charges involve suspects linked to Compassionate Touch Hospice, Spiritual Touch Hospice, and Fountain Hospice in Monterey County.

The indictment reveals that these healthcare professionals “recruited, enrolled, and certified patients for hospice services who did not have a terminal diagnosis.” In a deceptive scheme, they reallocated patients between various fictitious clinics to file false claims, ultimately siphoning off $3.2 million from Medi-Cal and Medicare.

Among those facing felony fraud charges are Nurse Nimfa Molina and Medical Directors Luis Altavia, Mark Samonte, and Shomir Banerjee, along with clinic owners Danny Lodevico, Flor Mora, and Christine Ngiud Yem.

Bonta’s office initiated this inquiry after receiving a tip from the California Board of Certified Nursing, leading to a meticulous investigation of what has been described as an “elaborate conspiracy” to cheat taxpayers.

These arrests come amid increasing scrutiny regarding allegations of extensive fraud in California.

Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, labeled California as a focal point for healthcare fraud in a social media video. He pointed out a troubling rise in hospice services and recalled visiting a location in Van Nuys that was forced to close due to credible fraud claims.

“When bad actors trick patients into fraudulent hospice care, they not only deplete taxpayer resources but also deny individuals medical care that might extend their lives,” Oz remarked. “It’s unacceptable, and we plan to eliminate these predators from the system.”

On a contrasting note, Bonta’s office downplayed the extent of fraud in California. He asserted, “Fighting fraud is a regular and ongoing part of our work, and over time we have built real expertise in identifying abuse, holding bad actors accountable, and recovering taxpayer money. It is simply wrong to suggest otherwise.”