WEST COVINA, CA — Two women from West Covina were arrested Tuesday in connection with a long-running scheme that allegedly defrauded Medicare of approximately $4.8 million through false hospice care claims, according to the U.S. Department of Justice.
Normita Sierra, 71, the owner and operator of Golden Meadows Hospice Inc. and D’Alexandria Hospice Inc., is accused of billing Medicare for hospice services provided to patients who were not terminally ill. Alongside her, Rowena Elegado, 55, is alleged to have assisted in the scheme.
Between September 2018 and October 2022, Sierra and Elegado reportedly submitted fraudulent claims totaling more than $3.8 million, collecting reimbursements from Medicare despite patients not meeting eligibility requirements.
Sierra faces nine counts of healthcare fraud, one count of conspiracy, and four counts of illegal remuneration for healthcare referrals. Elegado is charged with one count of conspiracy and four counts of illegal kickbacks.
Investigators allege that the pair paid marketers to recruit patients, bypassing physician referrals. Many of the patients were admitted into hospice without qualifying diagnoses, rarely died under hospice care, and were often discharged after six months—meanwhile generating up to $1,300 per patient each month.
The investigation also uncovered involvement from others. Carl Bernardo, 53, of Chino, previously pleaded guilty in September 2024 to accepting kickbacks, while Relyndo Salcedo, 60, a nurse practitioner from Fontana, pleaded guilty on May 22 to falsifying patient conditions in support of the scam.
If convicted, Sierra faces up to 10 years in federal prison per healthcare fraud count, while both women face additional time for conspiracy and illegal referral charges.
The case was investigated by the FBI and the U.S. Department of Health and Human Services Office of Inspector General.