Medicare Hospice Fraud: Three LA Hospice Operators Charged in $27 Million Scheme
Medicare Hospice Fraud has led to federal charges against three Los Angeles-area hospice operators accused of orchestrating a $27 million Medicare billing scheme involving deceased and ineligible patients, federal prosecutors announced Tuesday.
The U.S. Department of Justice (DOJ) said the defendants were among 455 individuals charged nationwide in one of the largest healthcare fraud enforcement actions in U.S. history. The nationwide crackdown spanned 45 states and uncovered more than $6.5 billion in alleged fraudulent claims targeting federal healthcare programs.
The three defendants were identified as Oren David Shachar, 59, Abraham Shin, 66, and Jeannie Choi, 57. Authorities allege the operators fraudulently enrolled individuals who were either not terminally ill or had already died into hospice care, then submitted false Medicare reimbursement claims worth tens of millions of dollars.
How the Alleged Medicare Hospice Fraud Worked
According to federal prosecutors, the defendants obtained information about deceased individuals from funeral homes and stole their identities. They allegedly created false records indicating hospice services had been provided and billed Medicare for care that never occurred.
Investigators said the fraudulent reimbursements were funneled through at least four hospice agencies allegedly owned or managed by Shachar:
- Gentle Touch Hospice in Valley Glen
- Oxford Hospice Care in Montclair
- Art of Hospice in Encino
- Holy Trinity Hospice in Glendale
Federal authorities claim these businesses were used to process fraudulent Medicare claims as part of the broader Medicare Hospice Fraud scheme.
California Identified as a Healthcare Fraud Hotspot
FBI Director Kash Patel said California accounted for approximately 800 of the 1,000 individuals placed on Medicare payment suspension lists during the nationwide enforcement operation.
“Healthcare fraud is especially concentrated in California,” Patel said while discussing the results of the investigation.
Health and Human Services Secretary Robert F. Kennedy Jr. also described Los Angeles as the nation’s epicenter of hospice fraud. He said approximately 800 hospice facilities in Los Angeles have been shut down as authorities intensify enforcement efforts.
The joint operation involved the DOJ, the Department of Health and Human Services, the FBI, and multiple federal agencies. Officials described it as one of the largest healthcare fraud investigations ever conducted in the United States.
Earlier this year, federal prosecutors also charged 15 individuals, including a Korean American defendant, in a separate hospice fraud case involving Medicare claims submitted for patients who were not terminally ill. That case was announced in April as part of the government’s broader effort to combat hospice-related healthcare fraud.
