DOJ unveils “Operation Never Say Die”: Eight arrested in sweeping LA hospice fraud takedown that cost Medicare tens of millions
The U.S. Department of Justice announced “Operation Never Say Die” on April 2, 2026, resulting in eight arrests and charges against 15 people in Southern California over hospice and healthcare fraud that cost Medicare an estimated $50–60 million.
Key takeaways
- Multiagency sweep: Operation Never Say Die led to eight arrests and 15 total defendants charged across Los Angeles and surrounding counties; DOJ press release.
- Alleged schemes: Authorities say sham hospices, fraudulent chiropractic and physical therapy billing, and fake immigration medical exams generated roughly $50–60 million in losses to Medicare and other programs (Fox LA).
- Notable defendants: A Glendale hospice run by psychologist Gladwin Gill and registered nurse Amelou Gill is accused of more than $5.2 million in false claims, with Medicare paying out over $4 million (ABC7 report).
- Broader enforcement: CMS suspended hundreds of providers in LA, federal prosecutors promised ongoing audits and additional takedowns; a press briefing and video of the announcement are available (press briefing video).
What happened: scope and methods of the alleged schemes
Federal prosecutors described a broad fraud network that used multiple methods to bill Medicare and other insurers for services patients never needed. Authorities say operators set up sham hospices that enrolled beneficiaries who were not terminally ill and paid them to pose as patients while providers billed Medicare for hospice services. See the DOJ announcement and related coverage from Fox LA.
At a press briefing, First Assistant U.S. Attorney Bill Essayli emphasized the scale:
“Medicare then paid millions of dollars — hundreds of millions of dollars — on false and fraudulent claims submitted by fraudsters.”
The department linked further context and the briefing video online (press briefing video).
Other schemes and billing fraud
Prosecutors say some operators also funneled tens of millions through fraudulent outpatient billing for chiropractic and physical therapy services, as well as billing for bogus medical exams tied to green card applications. These schemes allegedly involved coordinated referrals, sham clinical documentation and false billing codes (DOJ details).
Arrests, locations and specific cases
The multiagency sweep spanned Covina to Lakewood and included search and arrest warrants in Glendale, Anaheim, Carson, Van Nuys and other parts of Los Angeles County. Authorities said eight people were arrested and 15 people charged, including three nurses, a chiropractor and a psychologist (DOJ release).
Federal prosecutors highlighted the case of Gladwin and Amelou Gill, accused of operating a Glendale hospice that submitted more than $5.2 million in false hospice claims and received over $4 million from Medicare. Their attorney has denied the allegations; the couple was arrested and will appear in federal court for arraignment (ABC7 coverage).
Who spoke at the press conference
The April 2 announcement was led by First Assistant U.S. Attorney Bill Essayli and included representatives from the FBI and the Centers for Medicare and Medicaid Services (CMS). FBI Los Angeles Assistant Director Akil Davis joined remarks, as did CMS Administrator Dr. Mehmet Oz, who framed the action as part of a broader crackdown on Medicare fraud in Southern California (DOJ release, press briefing).
Dr. Oz announced plans for an aggressive review of hospice providers in California:
“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.”
He also mentioned CMS would consider a nationwide moratorium on certain home health equipment while audits expand (Fox LA).
Controversy over comments and video
The takedown followed a high-profile video showing Dr. Oz outside a Van Nuys bakery owned by Armenian Americans, where he alleged widespread hospice fraud. The bakery owner and others called the remarks discriminatory. Officials clarified that none of the defendants named in the April 2 arrests were connected to that Van Nuys video. Dr. Oz defended his statements as data-driven, pointing to suspicious hospice survival rates as a signal of potential fraud (ABC7, video).
Wider enforcement steps and numbers
Officials said CMS suspended 221 providers in Los Angeles — up from about 70 the prior week — as part of stepped-up oversight. Authorities described “license flipping” clusters in areas like Van Nuys, where dozens of hospice licenses are concentrated on a few blocks. Federal prosecutors signaled ongoing audits and additional takedowns in coming months (Fox LA, DOJ).
Potential penalties and legal process
Those charged face federal counts carrying significant prison terms and financial penalties if convicted. Counts include healthcare fraud (up to 10 years) and related wire fraud counts (up to 20 years in some cases). Defendants will be brought to federal court in Los Angeles for arraignment, and prosecutors emphasized a “zero-tolerance” approach to schemes that steal taxpayer dollars and endanger patients (DOJ statement).
Political reactions
California Governor Gavin Newsom pushed back at criticism that the state failed to curb hospice fraud, attributing broader responsibility to federal programs and stating in part:
“The Trump Administration — home to the biggest fraudsters on Earth — is trying to blame California for issues with THEIR federal programs.”
The exchange underscored tensions between state and federal leaders as CMS expands audits and the Justice Department pursues prosecutions (ABC7).
Implications for San Luis Obispo
Economic impact
San Luis Obispo County was not named in the initial arrests, but a California-wide hospice review and CMS audits could affect local providers and insurers. Expanded audits or license suspensions may increase compliance costs, trigger temporary funding holds, or strain small hospices that serve rural and older populations.
Political consequences
Local officials may balance support for stronger oversight with defending legitimate providers. The federal-state dispute may prompt county leaders to seek assurances from CMS and California’s Department of Health to ensure audits target bad actors without harming honest, community-based providers.
Social effects
Residents who rely on Medicare and hospice services may feel anxiety about care stability. Families are advised to verify hospice and home-health providers’ status and to be alert for potential exploitation of vulnerable populations.
Cultural relevance
San Luis Obispo’s close-knit communities place high value on trusted local care. News of fraud in nearby Los Angeles could increase demand for transparency, local oversight, and community referrals from faith-based groups, senior centers and clinics.
Practical applications for local residents
- Check provider status: Beneficiaries and families can use Medicare’s online tools to confirm a hospice or home-health agency’s Medicare enrollment and any suspensions.
- Ask questions: When choosing hospice care, ask about licensure, patient outcomes, care coordination, and request written explanations of services and expected costs.
- Report concerns: Suspected billing fraud or patient exploitation can be reported to the U.S. Attorney’s Office, the FBI, or CMS/Medicare.
