MONTEREY COUNTY, Calif. — Seven people have been arrested in connection with an alleged $3.2 million hospice fraud scheme, as state officials increase efforts to curb waste and abuse of taxpayer funds.
Attorney General Rob Bonta said in a statement,
“We want Californians to know that we are on it. To those committing fraud: we’re watching, we’re investigating, and we’ll act.”
The felony charges involve individuals connected to Compassionate Touch Hospice, Spiritual Touch Hospice, and Fountain Hospice. According to the complaint, nurses and medical staff enrolled and certified patients for hospice services who were not terminally ill and even shuffled patients between clinics to submit fraudulent bills.
The alleged fraudsters include:
Nurse Nimfa Molina
Medical directors Luis Artavia, Mark Samonte, and Shomir Banerjee
Clinic owners Danny Lodevico, Flor Mora, and Christine Nugiud-Yem
The attorney general’s office launched the investigation after a tip from the California Board of Registered Nursing, uncovering a “sophisticated conspiracy” to defraud taxpayers over several years.
Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid, highlighted California as a hotspot for healthcare fraud, citing suspicious increases in hospice services and facilities shut down for credible fraud allegations. He said,
“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.”
Bonta’s office, however, emphasized that fraud is actively monitored:
“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,” he said.
