Operation Never Say Die: DOJ arrests 8 in Southern California healthcare fraud takedown, targets hospice abuse
Los Angeles, California (High Desert News Online) – Federal prosecutors announced “Operation Never Say Die,” charging 15 people and arresting eight in a Southern California sweep tied to sham hospice operations and other schemes that allegedly billed Medicare more than $50 million in fraudulent claims.
Key takeaways
- Scope: Fifteen people are charged in the broader probe; eight were arrested in a sweep from Covina to Lakewood — see the DOJ press release.
- Primary fraud: Authorities say sham hospice programs enrolled beneficiaries who were not terminally ill and billed Medicare for end-of-life care — total intended losses exceed $50 million.
- Kickbacks: Medical providers allegedly paid cash kickbacks (about $300/month in some cases) to people who posed as hospice patients, documented in the federal materials and press conference video.
- Related schemes: Investigators uncovered separate frauds, including a $19 million chiropractic claim scheme and immigration-related forged medical exams affecting other benefit plans and insurers.
Overview of the takedown
Operation Never Say Die is a coordinated federal enforcement action announced by the U.S. Department of Justice and led publicly by First Assistant U.S. Attorney Bill Essayli. Prosecutors described a network of sham hospices and health clinics that allegedly recruited Medicare beneficiaries who were not terminally ill, enrolled them in hospice programs, and submitted false claims for end-of-life services that were not medically necessary. The DOJ characterizes the intended losses across the linked schemes at more than $50 million. See the DOJ advisory on the takedown.
Red flags identified by prosecutors
Federal auditors and prosecutors pointed to unusually high survival and live-discharge rates as evidence of fraud. For example, regulators audited a provider named Valley Pacific Hospice and found a live-discharge rate of more than 75% in 2022 — compared with a national average of roughly 17% — and concluded that none of 22 audited beneficiaries met hospice criteria.
The Glendale–Covina case: Gills charged
Federal officials singled out a Glendale-based hospice connected to a Covina couple: 66-year-old psychologist Gladwin Gill and his wife, registered nurse Amelou Gill. Prosecutors allege their hospice submitted more than $5.2 million in fraudulent claims and that Medicare paid out more than $4 million on those claims. The Gills were among those charged and arrested in the sweep; Gladwin Gill’s attorney has said he denies the allegations and looks forward to his day in court.
Other schemes uncovered
Investigators reported multiple additional fraud schemes uncovered during the operation:
- A South Bay ring, including a chiropractor, allegedly ran a long-running $19 million fraud against a private labor union health plan by filing false chiropractic and physical therapy claims from roughly 2010 through 2023; clinics such as Ohana Wellness Center in Carson are named in the charges.
- Immigration-related fraud where forged medical documents were used in green card physical exams.
- Schemes involving cloned insurance cards and thefts from labor union benefit plans exceeding $10 million.
Press conference: who spoke and key statements
First Assistant U.S. Attorney Bill Essayli led the announcement and described hospice fraud as widespread in the region, calling the area “high-risk” for these abuses. FBI officials emphasized the national cost of health care fraud and its impact on taxpayers and overall care costs. The Centers for Medicare & Medicaid Services administrator, Dr. Mehmet Oz, joined the briefing and announced a broad review of every hospice provider in California, saying:
“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.”
A video of the press conference is available: press conference video.
Video controversy and responses
The rollout followed earlier public comments by Dr. Oz that drew criticism. Oz was filmed standing in front of an Armenian-owned bakery in Van Nuys while alleging widespread fraud in the area; the video prompted outcry from the business owner and others who said the remarks were discriminatory. Essayli clarified that none of the defendants named in the announcement were connected to that video. Oz defended his remarks, saying he was “stating the facts as they’ve been explained to me” and pointing to numerical evidence that raised suspicion. The exchange and surrounding coverage are documented in post-briefing video material (press conference video).
Political responses
California Gov. Gavin Newsom responded to the takedown and criticized federal oversight, saying: “The Trump Administration — home to the biggest fraudsters on Earth — is trying to blame California for issues with THEIR federal programs,” and arguing the federal government must do more to police Medicare abuses. See reaction coverage: Newsom response video.
What the charges mean legally and next steps
The DOJ press materials list multiple charges across the cases, including health care fraud and related offenses. Six defendants made initial appearances in downtown Los Angeles, one appeared in Idaho, and others will be summonsed. Prosecutors said the operation aligns with a national task force focused on eliminating Medicare fraud in high-risk areas. Investigators noted that prior CMS audits and reviews found non-compliance at some hospices and supported criminal referrals; Dr. Oz’s announced statewide hospice review aims to expand those checks.
Implications for the High Desert, California
Economic: Medicare fraud increases costs for taxpayers, can raise insurance premiums, and may reduce resources for legitimate care. High Desert residents who rely on Medicare could see indirect effects if program costs rise or oversight tightens.
Political: The takedown fuels scrutiny of federal Medicare oversight in California and may become a campaign issue, especially amid disputes between state and federal officials.
Social and cultural: Hospice fraud can erode trust in end-of-life services. Community outreach in plain language — through faith groups, senior centers, and veterans’ services — is recommended to help residents verify legitimate hospice providers and understand eligibility rules.
Practical steps and how to report suspected fraud
Seniors and caregivers should:
- Review Medicare Summary Notices for unexplained hospice or medical charges.
- Ask for written medical certifications and seek second opinions when hospice eligibility is unclear.
- Report suspected fraud to the Health and Human Services Office of Inspector General or local FBI offices. The DOJ announcement included contact points for reporting suspected fraud — see the DOJ press release for details.
Sources and reporting notes
This article draws on the Department of Justice press release and video coverage of the federal press conference. Key sources include:
- DOJ advisory on the takedown
- press briefing video (primary)
- Newsom response video
- additional briefing coverage
