NEWSOM’S DEATH FRAUD EMPIRE: $50M Scam Paid People To Pretend They Were Dying

Federal authorities in California have dismantled a sprawling $50 million hospice fraud ring in a coordinated April 2 crackdown dubbed “Operation Never Say Die,” charging 15 individuals and arresting eight tied to sham hospice operations across Southern California. The scheme allegedly targeted vulnerable individuals—many not terminally ill-paying them kickbacks to pose as patients so operators could fraudulently bill Medicare, with some facilities showing wildly abnormal “non-death” discharge rates as high as 90%. Key suspects are accused of billing millions, using aliases to evade criminal histories, and even running operations from prison, while siphoning taxpayer funds into luxury lifestyles—part of what federal officials describe as a rapidly expanding “kingdom of fraud” in California’s hospice industry.

California has reportedly lost at leat 180 billion dollars to fraud, high ranking official and experts confirm.

This is a historic scandal. Newsom needs to resign in disgrace.

.@VP’s anti-fraud task force suspends 221 California hospice and healthcare providers so far — representing a 216% increase from numbers reported just last week https://t.co/tWTIUC3dAA

— Rapid Response 47 (@RapidResponse47) April 2, 2026

CHRIS RUFO: “Experts from Harvard, from the Department of Health and Human Services, from LexisNexis fraud division, have told us that fraud in California is unprecedented, it represents the largest financial crime in American history, and scammers have been stealing billions of dollars per year.”

BREAKING: A $50 MILLION hospice fraud operation in California was BUSTED and RAIDED in Gavin Newsom’s California this morning, VP JD Vance confirms

And JD’s fraud task force is just getting started

Raid Newsom’s house as well!
pic.twitter.com/hGMzbc4FWe

— Nick Sortor (@nicksortor) April 2, 2026

Federal authorities in California have announced a massive takedown of a $50 million hospice fraud operation, dubbed “Operation Never Say Die,” with raids and arrests occurring on April 2, 2026. (LA Times)

Key Details of the Bust:

• Arrests and Charges: Eight individuals were arrested, and a total of 15 people—including nurses, a psychologist, and a chiropractor—were charged in connection with fraudulent schemes.
• Location: The fraudulent activities were centered in Southern California, with raids and arrests in locations such as Anaheim, Covina, Glendale, and Tarzana.
• The Scheme: Defendants were accused of running “sham” hospice facilities that targeted vulnerable people—many of whom were not terminally ill—and paying them kickbacks (sometimes $300 a month) to pose as patients to bill Medicare.
• Key Suspects:
  • Lolita Minerd (Artesia): Accused of billing over $9 million and operating a hospice with an 85% “non-death” rate.
  • Gladwin and Amelou Gill (Covina): Allegedly used their daughter’s name to bypass criminal histories and operate a hospice that billed $5.2 million.
  • Nita Palma (Glendale): Accused of running fraudulent hospices while incarcerated in federal prison for previous fraud charges.
• Scale of Fraud: Investigators found that one facility had a 90% non-death discharge rate, far exceeding the national average. The fraudulent funds were used for personal expenses, including luxury items and international travel. 
  (Los Angeles Daily News)

This investigation is part of a broader crackdown on what federal officials describe as a “kingdom of fraud” in California’s hospice industry, which has seen explosive growth in the Los Angeles area. (FOX 11 Los Angeles)