Federal Authorities Charge 18 in $320 Million Healthcare Fraud Schemes

Two separate investigations—a nationwide takedown and a regional operation—have led to charges involving fraudulent claims to Medicare and Medi-Cal.

Alleged schemes involved fraudulent claims totaling more than $320 million.

National Healthcare Fraud Takedown

As part of the Justice Department's "2026 National Health Care Fraud Takedown," which resulted in 455 defendants charged nationwide in schemes involving over $6.5 billion in alleged fraud, five individuals were arrested in the greater Los Angeles area.

They are accused of submitting nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs. According to prosecutors, the claims involved drugs containing low-cost generic ingredients that were either not medically necessary or never provided. More than $178 million was paid out on these claims.

Among those charged was Christina Mareik, 61, of Whittier, who prosecutors allege facilitated fraudulent prescriptions.

Separate Indictment: $27 Million Medicare Fraud

In a separate case within the same takedown, Oren David Shachar, 59, of Van Nuys; Abraham Shin, 66, of Corona; and Jeannie Choi, 57, of Torrance, were charged in a 16-count indictment for allegedly conspiring to defraud Medicare of approximately $27 million.

They face charges including:

• Conspiracy to commit healthcare fraud
• Healthcare fraud
• Aggravated identity theft
• Monetary transactions involving criminally derived property exceeding $10,000
• Violations of the Anti-Kickback Statute

Additionally, a San Fernando Valley man was charged with operating hospice care companies that fraudulently billed Medicare approximately $27 million.

Regional Fraud Operation: Southern California

A separate operation announced by the U.S. Department of Justice led to the arrest of eight individuals, including doctors and nurses, with charges against more than a dozen people. Search and arrest warrants were executed across the region from Covina to Lakewood.

Authorities estimate the alleged schemes resulted in losses of approximately $60 million.

Five of the cases involve hospice-care centers located in Glendale, Artesia, Tarzana, and Simi Valley.

Additional arrests included:

• One individual in Idaho and one in Los Angeles for allegedly defrauding a West Coast labor union's health care plans.
• One person arrested in Los Angeles facing accusations of forging immigration medical documents.

Fraudulent Hospice Care Allegations

According to First Assistant U.S. Attorney Bill Essayli, defendants allegedly recruited individuals who were not terminally ill and compensated them to pose as patients receiving hospice care. This practice reportedly led to Medicare making payments based on false and fraudulent claims.

"California is a focus of national anti-fraud efforts," Essayli stated, reiterating a "zero-tolerance policy" for those who defraud American taxpayers.

Specific Cases Highlighted

• Artesia-based hospice center: The owner allegedly submitted over $9 million in fraudulent hospice claims to Medicare and received more than $8.5 million. Prosecutors claim the owner paid beneficiaries and marketers for referring purported hospice patients. One couple reportedly was promised $300 per month to enroll in hospice care despite not needing it and received unnecessary items.

• Los Angeles nurse: Charges were announced against a nurse who allegedly used a Tarzana hospice center to submit over $3.8 million in claims, with Medicare paying approximately $3.4 million. This individual has not yet been arrested.

• Previously convicted defendant: One individual charged in a new hospice fraud case is currently serving federal prison time for a previous hospice fraud conviction from December 2024. Her husband was arrested as a co-defendant.

Government Statements and Responses

First Assistant U.S. Attorney Bill Essayli and Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services (CMS), held a press conference alongside representatives from various law enforcement agencies, including the FBI.

Dr. Oz stated that authorities have addressed 221 hospices in the last 10 weeks and announced plans to review every hospice in California, with a goal to complete this process within the current year.

Oz's agency is also proposing a new, publicly available hospice scoring system based on care metrics to help identify potentially illegitimate facilities. Oz noted that hospice fraud saw an increase during the COVID-19 pandemic.

California Governor Gavin Newsom's office responded by noting the state's actions against hospice fraud, including a 2021 law to halt new hospice licenses due to fraud concerns. The office reported revoking over 280 hospice licenses and investigating 300 providers in the past two years.

Governor Newsom commented on social media: "Glad the federal government is finally stepping up to do their part."

During the press conference, Essayli and Oz criticized Governor Newsom and Los Angeles County regarding oversight. Earlier in January, Oz had posted a video alleging significant hospice and home care fraud in Los Angeles, which Newsom's office characterized as containing "baseless and racially charged allegations" targeting Armenians. Newsom's office filed a civil rights complaint regarding this statement.

Court Proceedings

Court dates have not been scheduled, and information regarding legal representation for those arrested was not immediately available.