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The Van Nuys, California, hospice fraud is a massive, multi-year, and ongoing healthcare scandal, described as an “epidemic” centered in the San Fernando Valley and greater Los Angeles area.

Federal and state investigations have identified a “kingdom of fraud” involving hundreds of millions of dollars in false billings to Medicare and Medi-Cal, often characterized by phony hospice companies, stolen identities, and the exploitation of healthy individuals.

An office building in Van Nuys (the Morabi Professional Medical Plaza) became notorious for listing nearly 90–150 plus “licensed hospice agencies”..... far exceeding the buildings physical capacity.

<><>Many of these were “shell” companies with no staff, dead phone lines, or a paper sign on a door.
<><> Fraudsters bought or stole personal information from the dark web,
<><>they enrolled unsuspecting, healthy people,
<><>then billed Medicare/Medi-Cal for services never provided.
<><>As of April 2026, Ca AG Rob Bonta dismantled $267 million in fraudulent claims,
<><>21 suspects are charged.
<><>kickbacks were paid to doctors to falsely certify phantom patients as “terminally ill.”
<><>This resulted in several suspects arrested
<><>the seizure of over $757,000 in cash, along with firearms.
<><>The US House Oversight Committee launched a probe, wrt reports of “rampant fraud”.

Perpetrators often signed up patients who were not terminally ill, or in many cases, knew nothing about their enrollment. Investigators found cases where a single doctor’s name was listed on thousands of claims across over 100 different hospices. Some “hospices” reported high patient numbers but near-zero mortality, which is a red flag for hospice care, as patients receiving Medicaid are required to have six months or less to live.

California implemented a moratorium on new hospice licenses in 2021 to stop the surge of fraudulent operators, with reports indicating over 60% of applicants in the area were denied. Many victims only learned they were listed as “dying” when seeking care for other illnesses, with one woman discovering her benefits were hijacked while trying to seek physical therapy.

The investigation is ongoing, with officials continuing to work through hundreds of open cases related to this specific fraudulent network.