← The 47 Morning Update with Ben Ferguson
The 47 Morning Update with Ben Ferguson
California Fraudsters Profit in End Of Life Hospice Scam
00:16:16
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Ben Ferguson
This is an Iheart podcast. Guaranteed human.
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US Attorney Bill Asale
I have never had any knowledge of
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Ben Ferguson
Epstein abuse of his victims.
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US Attorney Bill Asale
I was never involved in any capacity. I was not a participant, was never on Epstein's plane and never visited his private island.
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Ben Ferguson
You're listening to the 47 Morning Update with Ben Ferguson.
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Good Friday morning. Nice to have you with us on the 47 Morning Update. And we've got one big story for you. This involves massive fraud. California forced to Dismantle More than 267 million in hospice fraud ring in operation Skip Chase. The shocking part is Democrats are claiming now in California they've been fighting fraud all along. And we expose exactly how they're lying to you about it. Now before we get to that, I want to tell you about my good friends at Patriot Mobile and the incredible work they do with every cell phone bill that you pay. America is entering the 250th year and the direction of this country is being decided right now. In our culture and our economy and who we choose to support matters more than ever. Most wireless companies don't care who you are or what you believe. They just want your money. Patriot Mobile, they're different. For more than 12 years they've stood with Americans who believe freedom is worth defending. Funding the Christian conservative movement. When others stay silent, that's what they do. So here's the deal. You don't have to give up quality or service when you switch to Patriot Mobile. They deliver premium priority access on all three major U.S. networks. So you'll get the same or better coverage than you have today. Think switching is a hassle? It isn't anymore. In 2026, you keep your number, keep your phone or Upgrade and their 100 US based support team can activate you minutes. Still paying off a device. Patriot Mobile even offers a contract buyout. This is a defining year. We must work together to save our country. So go to patriotmobile.com Ben47 or call 972 Patriot and if you use the promo code Ben47 you'll get a free month of service. That's patriot mobile.com Ben47 or 972 Patriot and switch. Today it's the 47 Morning Update and it starts right now.
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Story number one, the easiest way I
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can describe this next story is, well, at least it's a big start for the president, United States of America. He promised that he was going to go after waste, fraud and abuse and he was gonna make sure the government was doing everything they could to make sure your tax dollars weren't being stolen. Well, now we're gonna move to California where officials there have just announced a major crackdown on health care fraud. They have dismantled what is being described as a massive 267 million dollar hospice scam. They're now calling the operation Skip Trace. Authorities have also charged 21 individuals in connection with this scheme. Several arrests have already been made and many more are actually expected. Now, according to investigators, this was not a small time operation. It was a highly organized fraud ring that exploited California's Medi Cal system. That's the state's Medicaid program. How do they do it? It's pretty simple. They were billing for hospice services that were never actually provided to anyone. In fact, officials say not a single legitimate hospice service was ever delivered to anyone. Despite millions of dollars in claims and your tax dollars being stolen. The scheme worked with purchasing stolen personal information, in some cases from the dark web. Then they would use those identities to enroll fake patients into Medi Cal. From there, the suspects used a network, as they described it at the press conference of at least 14 different hospice companies often controlled by so called straw owners. They would then submit fraudulent claims and collect your tax dollars. Fox 11, Los Angeles describing it this way.
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Nick Garcia
Sometimes the people who need care the most end up in a system that needs watching, too. State officials are now promising to continue their crackdown on hospital hospice fraud. The investigation could raise bigger questions about trust money and who profits at the end of life. Crackdowns now zeroing in on a scheme has drained millions from medical. Fox Levin's Nick Garcia is in downtown L. A where state leaders have stolen identities help fuel this case.
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Fox 11 Reporter
Right, Christine? Well, Attorney general Rob Bonta was here today to announce Operation Skip Trace, which happened yesterday and targeted 21 suspects across 10 different locations right here in Southern California. Those suspects accused of defrauding the state of $267 million, a massive takedown of a complex fraud ring which investigators say took advantage of state money intended for hospice care.
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Ben Ferguson
This was a brazen, calculated criminal scheme that exploited the medical system, stole from the state of California and Medicaid and prevented services and care from going to sick. Individuals who actually need it.
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Fox 11 Reporter
The suspects defrauded the state $267 million by using stolen identities to enroll in hospice. Five have been arrested so far. State officials say they're increasing protections.
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Ben Ferguson
We are using a faster and more secure online process, and we're adding stronger checks to prevent fake applications or stolen identities from getting into the system.
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Fox 11 Reporter
This operation comes as the federal government has started to crack down on hospice fraud. U.S. attorney Bill Asale on Good Day L. A Thursday morning.
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US Attorney Bill Asale
Fraud hasn't always been a priority of the Department of Justice, particularly fraud against taxpayers. That is changing because when you defraud these programs, not only are fraudsters getting away with our money, it's taking money away from people really need it.
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Fox 11 Reporter
But Attorney General Bontes says fraud has long been a priority for California's Department of Justice.
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Ben Ferguson
While health care fraud might be President Trump's shiny new political talking point, California DOJ has been going after health care fraud since 1979.
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By the way, I love how Democrats in California, as you just heard, they're saying, well, we've been on top of this. How was this uncovered? It wasn't because of their work. It was because of undercover individuals, literally citizen journalists, who started looking and exposing all of the fraud. And now California is wanting you to believe that they've been on top of the issue all along. It's just not the case. Now, law enforcement did execute search warrants across multiple locations in Southern California. We now know they seize cash, they seize firearms, and evidence tied to the operation. Prosecutors have hit the defendants with a range of serious charges, including healthcare fraud, identity theft, conspiracy, and money laundering, crimes that could carry significant prison time if they're convicted. By the way, to be clear, there's no indication that California is actually getting serious about really cracking down on this. They were shamed into doing their job. Now, the state officials, one that you just heard there, says this case highlights a growing national problem. So they want you to believe that what you're witnessing in California is, well, happening where you live. And even if you're in a conservative state that cracks down, this stuff, they're telling you, no, no, no, there must be fraud there. We're not the only ones that have an issue. They also said they're sending a clear message. Those who exploit programs meant for the sick and vulnerable and still from taxpayers will be aggressively pursued and held accountable. Now, there's also no indication that California is actually ready to do that. So the California Attorney General, Rob Bonta, and the Department of Health Services there, they're now saying that, like you should be thanking them for taking down the staggering $267 million healthcare fraud ring. The only reason why this happened is because you had conservatives online that publicly shamed them into doing their job. The operation which involved 21 suspects so far, 14 fraudulent companies targeting the state's medical system by billing for hospice services that were never rendered to anyone. That is the story that everyone should be angry about. Yeah, they've been charged, but it wasn't like California was actually leading the way. What's also interesting about these 21 suspects have been charged is the investigation has now hit into 130 associated shell companies as well. Now it's unclear exactly how much of the 267 million is defrauded funds and how much of it can actually be recovered. Monta noted that only about 30 million has been retrieved so far. So we're missing 237 million. So when he says we're on top of it, ask yourself, if that's true, then where's the other 230 plus million dollars that you prom LA? Good day. That is one of the leading morning shows in la. They went on the air and they explained it to their audience a little bit differently. Listen carefully.
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Good Day LA Host
These are cracking down on what they call a massive health care fraud scheme right here in California.
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Ben Ferguson
Eight people are now under arrest, accused of running sham hospice operations that allegedly stole more than $50 million from Medicare. The takedown, dubbed Operation Never say Die, could set signal a broader push to target fraud across the region. Joining us now is US Attorney Bill Asale to break down the case, what it means for taxpayers, also the integrity of our health care system. Thank you so much for being here this morning.
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US Attorney Bill Asale
Thanks for having me.
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Ben Ferguson
This is a big operation.
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US Attorney Bill Asale
It is big. It was one of the first operations under the Vice President's new task force on fraud. We did in coordination with the Vice President and of course Dr. Oz who oversees Medicare program. And we're out there early and we took down, we announced 15 separate cases. We arrested eight people and again, almost $60 million in fraud just in one day.
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Good Day LA Host
So explain how this hospice fraud worked. I mean, these little communities are sort of working together to try to, to try to scam the system.
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US Attorney Bill Asale
Yeah, a lot of these are repeat fraudsters and what happens is they take advantage of vulnerabilities in our systems. So it starts with getting a hospice license through the state of California. And to be honest, California did not have good systems in place. They still don't for vetting and checking to make sure these are legitimate Operators, once they have that hospice license, they then have the ability to bill Medicare. And that's what they were doing. They were submitting fraudulent names, or in some cases, they are real people's names. But they weren't really in hospice. They were not dying. That's why the operation never say die, say die, and billing millions and millions of dollars over a few years.
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Ben Ferguson
And were these people getting kickbacks then?
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US Attorney Bill Asale
Some were, some weren't, yes. And again, on average, they got about five or six thousand dollars per name per month. And then they would kick back maybe $300 to the patients themselves. But the fraudsters, of course, are always going to want to keep most of the money.
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Ben Ferguson
How long had this been going on?
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US Attorney Bill Asale
This has been going on for years. We've really seen an explosion uptick. After Covid, there was a lot more money put into systems, put into ppp and, and that's where I think fraudsters realize the amount of money that's available in these government accounts. But, you know, the message we want to get across is fraud hasn't always been a priority of the Department of Justice, particularly fraud against taxpayers. That is changing because when you defraud these programs, not only are fraudsters getting away with our money, it's taking money away from people really need it. It's draining the health care system of important money that's needed for people who actually need it. And that's really the big message here.
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Good Day LA Host
We do have the response from Governor Newsom and also AG Robanta responded to this. You guys been going kind of back and forth online, and part of it is what they're saying is that it's the federal government that oversees Medicare, it's not us. They also are saying, look, we've been part of this partnership to crack down on this fraud in Medicare. We've made huge strides in all of this. What do you have to say?
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US Attorney Bill Asale
Yeah, a couple of things going on here. Number one, the federal government's basically the piggy bank. It's the federal government provides most of the money that goes to these programs. However, they're administered by the states. It's the state of California that's responsible for hospice. California license every single hospice. They're supposed to be vetting and checking. And our criticism of the state of California is that they don't have sufficient measures in place to prevent and detect fraud. In the first instance, the money's going out the door and then they're coming to us and saying all this fraud occurred. Help us get the bad guys. We don't Want to pay and chase. We want to stop the fraud from happening in the first.
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Good Day LA Host
What I find interesting is that no one denies that this is taking place. So even though they're saying we're, we're, we're fighting it, also, everybody admits that this is, this is a big deal.
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US Attorney Bill Asale
It's a massive deal. I think the state does dispute the extent how much it is. We think it's potentially in the hundreds of billions of dollars. But again, the focus has always been to push money out the door. I was in Sacramento, I was a legislator up there. They want to get as much money out the door as possible. That's how they measure success. We want to change that mindset. We want to focus on making sure that the fraudsters never get the money in the first place so we're not having to chase them down, arrest them, and try to recover money after the fact.
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Ben Ferguson
Well, yeah. What happens to all that money now?
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US Attorney Bill Asale
Well, a lot of it. It gets spent honestly. A lot of it. Fraudsters buy luxury cars and homes, hotels, vacations, bags. So we try to recover as much of it as we can. We will seize properties, we will, will seize cars, we will seize bank accounts. But frankly, a lot of it gets spent. And a lot of these fraudsters are also tied to international organizations and the money goes out the countries.
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Ben Ferguson
Let's just pause there. And I want you to just think about what you just heard there on the local Fox affiliate. And they're doing a better job on Good Day LA talking about this than the national media is. They're also telling you the truth of the money's going overseas. And they're also telling you the truth that Democrats can say how they want to. This is somehow a fake federal problem instead of a local problem. And the way that they described it. But they're also saying, like, let's be clear, they're the ones that are over all of this. And that clearly is part of the hypocrisy here. Democrats did not care that this fraud was taking place. They knew about it. There were people, multiple people that had alerted them of what they saw was clearly fraud, and they looked the other way. Why? Because they don't care if people are stealing from you, the taxpayer. They don't care what's happening here as long as they're getting a little bit of a kickback. We saw the kickbacks, by the way, in Minnesota, where many of these fraudsters were giving political donations to, you guessed it, the Democrats that were in charge at the local, state and the national level. Now this much fraud. There were massive signs. Everyone knew there were signs and they didn't care. The question we should be asking now is why? And what did they know? When do they know it? And how much are they hiding from all of us?
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Thank you for listening to the 47 Morning Update with Ben Ferguson. Please make sure you hit subscribe wherever you're listening to this podcast right now. And for more in depth news, also subscribe to the Ben Ferguson Podcast and we will see you back here tomorrow.