Federal Agents Target Health Care Fraud in Los Angeles
In a significant crackdown on health care fraud, federal agents have executed raids in Los Angeles, as part of a broader initiative led by Acting Attorney General Todd Branch in Washington, D.C.
Authorities have apprehended four individuals suspected of stealing millions in taxpayer money and charged six others. Among those charged is a hospice operator accused of misusing the identities of deceased individuals to finance a fleet of luxury vehicles, including a Rolls-Royce Phantom.
During a Tuesday press conference, Branch revealed plans for additional arrests, indicating that hundreds of defendants would face charges nationwide.
This year alone, the government has uncovered health care fraud schemes totaling over $6.5 billion, resulting in a record-breaking 455 arrests across 45 states, according to top prosecutors.
“Scammers can no longer defraud American taxpayers,” Branch stated during the announcement at the Justice Department’s headquarters.
“If you attempt to harm or defraud Americans, we will seek you out, confiscate any assets, and prosecute you to the fullest extent of the law,” he added.
Last week, federal agents apprehended Oren David Shachar and detained the owners of at least four hospices in the Los Angeles area, suspected of a scheme that involved exploiting people’s identities to bill for hospice services.
Shachar allegedly utilized funds from his business to purchase lavish items, such as a $15,000 down payment made for a Rolls-Royce Phantom, which has a total cost nearing $530,000.
The Central District of California’s federal prosecutors have laid criminal charges against ten defendants related to allegations of defrauding government-funded health care programs or abusing medical positions to unlawfully prescribe controlled substances.
“Public health programs are intended to support the elderly, the sick, and other vulnerable members of our communities,” said First Assistant U.S. Attorney Bill Esseri. “They are not meant to benefit scammers.”
Shachar, 59, from Van Nuys, and Abraham Singh, 66, from Corona, were taken into custody on June 18 and presented in U.S. District Court in Los Angeles.
They are both facing charges, along with Jeannie Choi, 57, from Torrance, in a 16-count indictment accusing them of defrauding Medicare of around $27 million.
Choi was arrested on Monday and is expected to appear in court soon.
Authorities allege that Shachar colluded with marketers Choi and Singh to submit fraudulent applications for hospice services for individuals who were either not terminally ill or had already passed away, and that kickbacks were paid to local funeral homes on behalf of the deceased.
In another development, federal agents arrested Christina Marake, 61, from Whittier, on federal charges related to health care fraud.
Marake is accused of submitting approximately $270 million in false claims to Medi-Cal for expensive yet unnecessary prescription drugs that often were never actually delivered.
Prosecutors claim that Medi-Cal disbursed more than $178 million due to these fraudulent applications.
Marake worked alongside Paul Richard Randall, 67, who also participated in the scam and implicated himself in billing the government for fictitious medications.
Federal authorities have confiscated multiple luxury vehicles and rare baseball cards connected to this fraud. Randall pleaded guilty to wire fraud and may face up to 30 years in federal prison.
Marake was released on bail, set at $100,000, with her arraignment scheduled for July 23.
Esseri emphasized that federal authorities remain steadfast in their efforts to combat health care fraud in Los Angeles, stating, “We will find you. We will arrest you. And we will seek long prison sentences.”
