Seven people were nabbed in an alleged $3.2 million hospice fraud scheme as pressure ramps up on California officials to address waste, fraud and abuse of taxpayer dollars.
“We want Californians to know that we are on it,” said Attorney General Rob Bonta in a statement. “To those committing fraud: we’re watching, we’re investigating, and we’ll act.”
Felony charges were filed against seven alleged fraudsters associated with Compassionate Touch Hospice, Spiritual Touch Hospice and Fountain Hospice located in Monterey County.
According to the complaint, nurses and medical professionals “recruited, enrolled, and certified patients for hospice services who did not suffer from a terminal diagnosis” and even shuffled patients between the bogus clinics in order to submit fake bills for hospice services — ultimately stealing $3.2 million from Medi-cal and Medicare.
Nurse Nimfa Molina; medical directors Luis Artavia, Mark Samonte and Shomir Banerjee; and clinic owners Danny Lodevico, Flor Mora and Christine Nugiud-Yem each face felony fraud charges for their alleged roles in the billing scheme.
The attorney general’s office acted upon a tip from the California Board of Registered Nursing and spent years investigating the “sophisticated conspiracy” to defraud taxpayers, according to the statement.
The arrests come as California faces scrutiny over claims of rampant fraud in the state.
Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid, described California as ground zero for health care fraud in video posted to social media.
The former TV doctor described a suspicious increase in hospice services over the past several years and visited a location in Van Nuys that he claimed was the site of a now-closed hospice facility that was suspended after credible allegations of fraud.
“When bad actors trick patients into fraudulent hospice care, they don’t just drain taxpayer dollars; they strip people of the medical care that could have helped them live longer,” Oz said.
“That’s unconscionable, and we are going to drive these predators out of the system.”
Bonta’s office pushed back on the idea that fraud is rampant in California.
“Fighting fraud is part of our regular, ongoing work, and over time we have built real expertise in identifying abuse, holding bad actors accountable, and recovering taxpayer dollars To suggest otherwise is just wrong,” Bonta said.
