Massive Takedown: DOJ Moves Against California’s Alleged ‘Fraud Kingdom’ in $60M Case

Operation “Never Say Die”: DOJ Crushes $60M “Kingdom of Fraud” in California as Federal Task Force Targets Corrupt Hospice Networks

In a dramatic show of force that marks a seismic shift in federal law enforcement priorities, the Department of Justice (DOJ) has unsealed a series of devastating fraud charges in the Central District of California. Dubbed “Operation Never Say Die,” the massive multi-agency takedown has targeted what officials are calling a “Kingdom of Fraud” in Southern California, specifically focusing on a $60 million hospice care scam that exploited the Medicare system and terminally ill patients. The operation, which involved the FBI, IRS, HHS-OIG, and HSI, represents the first major strike by the Trump administration’s newly formed anti-fraud task force, signaling an end to what officials describe as years of “lacked oversight” and “failed leadership” in Sacramento.

The press conference, held in Los Angeles, featured a “who’s who” of law enforcement and administrative leadership, including First Assistant United States Attorney Bill Asalei and CMS Administrator Dr. Mehmet Oz . Their message was unambiguous: the era of “no vetting and no checking” in California is over. Asalei highlighted that while the federal government provides the funding for these critical health services, the state of California is responsible for issuing licenses and regulating providers. He pointedly criticized the state’s failure to implement basic safeguards, noting that a deadline for emergency hospice regulations on January 1st was missed without explanation.

The specifics of the cases unsealed today are nothing short of shocking. Among those arrested were eight defendants, including medical professionals such as nurses and doctors, who allegedly operated fraudulent hospice facilities . In one particularly egregious case, 65-year-old Lolita Menard of Anaheim is accused of billing Medicare for more than $9.1 million over a five-year period through her company, Topena Hospice Care . Investigations revealed that her facility had a “death discharge rate” of only 15%, meaning 85% of her “terminally ill” patients survived—a figure five times higher than the national average . Menard and her employees allegedly recruited healthy individuals at grocery stores, offering them $300 a month in cash envelopes to use their identities for fraudulent billing .

Another case highlighted the “revolving door” of justice that officials are now vowing to close. Nidita Palma, a 76-year-old three-time convicted healthcare fraudster, was charged with running a new hospice fraud scheme while she was already serving time in federal prison . Working with her husband, she allegedly submitted $4.8 million in fraudulent claims over a 20-month span, receiving $4.2 million from Medicare despite being legally barred from the industry . This level of audacity, officials say, was fostered by a state environment where “money goes out the door with no questions asked”.

Dr. Mehmet Oz, who joined a SWAT team at 5:00 a.m. to witness the arrests of Gladwin and Miss Gil—a doctor and nurse team running a fraudulent hospice under their daughter’s name—spoke passionately about the human and monetary costs of such crimes . “If you’re willing to steal money from the American people… you’re willing to sacrifice their health and you’re willing to give up their lives,” Oz stated . He pointed out a staggering statistic: Los Angeles County alone is home to roughly 1,800 hospices, nearly one-third of the entire nation’s total . Experts at CMS believe that up to half of these facilities may be fraudulent, operating in clusters and sharing employee numbers to avoid reporting obligations .

The crackdown isn’t limited to healthcare. Operation Never Say Die also shed light on massive Electronic Benefit Transfer (EBT) fraud. Deputy Special Agent in Charge Dwan Gabbrand of HSI Los Angeles reported that $310 million has been stolen from SNAP recipients in the community over the last four years through sophisticated skimming operations. He noted that 42 of the 49 individuals arrested in recent EBT investigations were foreign nationals, primarily from Romania, who targeted California specifically because of its “ineffective measures” and “loopholes in benefit structure” .

Law enforcement leaders emphasized that this operation is just the beginning of a “whole of government” approach to restoring financial integrity. Vice President Vance and Attorney General Bondi have reportedly made fraud a top priority, reorienting resources to “hunt, prosecute, and put those taking advantage of the American people behind bars”. Bill Asalei concluded the conference with a stern warning to state officials: “Nobody’s above the law. If we find evidence… that anyone within the state system was facilitating the fraud… they will be arrested and charged”. For the residents of California, “Operation Never Say Die” offers a glimmer of hope that the “gravy train” for criminals has finally reached its end.