Los Angeles hospice owner arrested in alleged $27.7 million Medicare fraud case

Inside the alleged Medicare fraud scheme

A major federal investigation has put a Los Angeles hospice business under intense scrutiny. Prosecutors say the case is part of a sweeping nationwide effort to combat alleged health care fraud.

The allegations have raised important questions about Medicare oversight and patient protections. Here’s what investigators claim happened and why this case is making headlines across the country.

The investigation is part of a nationwide crackdown

The Los Angeles case was announced as part of the Justice Department’s 2026 National Health Care Fraud Takedown. Officials said 455 defendants across 56 federal districts were charged in schemes involving more than $6.5 billion in alleged false health care claims.

Federal investigators said the nationwide operation targeted suspected fraud involving Medicare, Medicaid, and other federal health programs.

Authorities also reported more than $182 million in asset seizures, along with CMS provider suspensions, billing privilege revocations, and efforts to stop improper payments before more taxpayer money was lost.

Prosecutors outline the alleged hospice scheme

According to prosecutors, the alleged fraud centered on enrolling Medicare beneficiaries into hospice programs even though many were not terminally ill. Hospice benefits are intended only for patients whose physicians certify they are expected to have six months or less to live if their illness follows its normal course.

Investigators allege false medical records, improper certifications, and kickbacks were used to support unnecessary hospice enrollments. They claim the companies then submitted Medicare claims for services that patients either did not need or should not have received under hospice eligibility rules.

Authorities allege deceased identities were used

One of the most serious allegations involves the reported use of deceased Medicare beneficiaries’ identities. Prosecutors claim personal information obtained through a funeral home employee was allegedly used to enroll some people in hospice after they had already died.

Investigators further allege that backdated medical records were created to make those enrollments appear legitimate before the patients’ deaths. Prosecutors argue these actions allowed fraudulent Medicare claims to be submitted for reimbursement.

Three defendants are named in the indictment

Federal prosecutors charged Oren David Shachar, Abraham Shin, and Jeannie Choi in a 16-count federal indictment. Prosecutors allege the broader hospice fraud scheme ran from about February 2021 through March 2026, while Shin and Choi became involved in 2025.

Each defendant was charged with conspiracy to commit health care fraud, health care fraud, and aggravated identity theft. Shachar also faces charges tied to illegal kickbacks, selling Medicare beneficiary identification numbers, money laundering, and criminally derived property.

How the Medicare hospice benefit works

The Medicare hospice benefit is designed for patients with terminal illnesses who choose comfort-focused care instead of treatments meant to cure their condition. To qualify, physicians must certify that a patient is expected to have six months or less to live if the illness follows its normal course.

Because hospice care is funded by Medicare, providers must follow strict eligibility and documentation requirements. Prosecutors allege those standards were ignored in this case to obtain improper reimbursements.

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Prosecutors describe alleged kickback payments

Federal prosecutors allege Shachar paid illegal kickbacks and bribes to patient marketers and recruiters, including Shin and Choi, in exchange for hospice referrals. Authorities say those payments helped bring Medicare beneficiaries into the hospices even when they did not meet eligibility requirements.

Federal law bars payments meant to induce referrals for services reimbursed by Medicare and other federal health programs. Prosecutors allege the kickbacks helped support fraudulent hospice billing over the course of the scheme.

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Millions in Medicare payments are under scrutiny

According to the indictment, the Shachar hospices allegedly submitted about $27.7 million in false and fraudulent Medicare claims. Prosecutors say Medicare paid about $26.9 million based on those claims.

Investigators allege the claims involved hospice services that were medically unnecessary, ineligible for reimbursement, not provided as represented, or procured through illegal kickbacks and bribes. The financial allegations make the case one of the notable hospice fraud matters announced during the nationwide enforcement effort.

The case highlights ongoing fraud concerns

Health care fraud remains a major concern because it can increase costs for taxpayers and undermine trust in programs like Medicare. Officials say fraudulent billing may also divert resources from patients who genuinely need hospice and other medical services.

Federal agencies have increased data analysis and cooperation to identify suspicious billing patterns more quickly. The latest enforcement action reflects a broader effort to detect complex fraud schemes before losses continue to grow.

The federal case will move through court

The defendants are expected to face further proceedings in federal court as prosecutors present their evidence. They have the right to challenge the allegations, and the government must prove every criminal charge beyond a reasonable doubt before any conviction can occur.

For now, the indictment represents allegations rather than findings of guilt. The case is likely to draw continued attention as additional court filings and hearings provide more details.

Health care fraud remains a national priority

The Justice Department has made health care fraud enforcement a major priority, working with agencies including the FBI, the Department of Health and Human Services Office of Inspector General, and the Centers for Medicare & Medicaid Services. These partnerships help investigators detect suspicious billing and pursue complex fraud cases.

Officials say protecting Medicare funds is essential as the program serves millions of older adults and people with disabilities. They continue to encourage the public and health care workers to report suspected fraud.

Hospice providers face strict federal rules

Hospice providers must follow federal regulations designed to ensure patients receive appropriate end-of-life care. Medicare requires accurate medical documentation, physician certification, and ongoing reviews to confirm that patients continue to meet hospice eligibility standards.

Cases like this highlight the importance of oversight when taxpayer-funded health care programs are involved. Authorities say enforcement efforts are intended to protect both patients and the integrity of the Medicare system.

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The investigation is still unfolding

The criminal case against Oren David Shachar and the other defendants is ongoing, and additional court proceedings are expected in the coming months. Prosecutors will continue presenting evidence, while the defense will have the opportunity to challenge every allegation made in the indictment.

As the legal process moves forward, the defendants remain presumed innocent unless proven guilty in court. The outcome could influence future Medicare fraud investigations and reinforce federal efforts to combat health care fraud nationwide.

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What do you think about the allegations in this case and the government’s efforts to crack down on Medicare fraud? Share your thoughts in the comments, and if you found this slideshow informative, please like it.

This slideshow was made with AI assistance and human editing.

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