8 People in Custody After Massive LA Healthcare Fraud Bust

Nick Shirley reports on a significant healthcare fraud operation uncovered in Los Angeles, where according to the video, eight individuals have been taken into custody in what is described as one of the first major arrests coordinated under the Trump administration’s new task force on fraud, led by Vice President JD Vance.

According to Nick Shirley, the case centers on an alleged scheme involving a husband-and-wife pair—a doctor and a nurse—who recruited individuals who were not terminally ill and allegedly paid them to pose as hospice patients. Nick Shirley reports that the scheme allegedly defrauded the federal government of nearly $4 million. In the video, a First Assistant U.S. Attorney for the Central District of California explains that the fraudulent operation allegedly ran for years. According to the attorney cited by Shirley, the couple obtained a hospice license from the State of California under their daughter’s name, allegedly because they themselves had criminal records that would have prevented them from obtaining the license directly. The attorney claims that California issues such licenses with minimal checking or vetting procedures.

Nick Shirley notes that this arrest represents the first major coordinated action under the new federal task force structure. The video includes a response from California Governor Gavin Newsom, who argues that the state has been working to combat hospice fraud for years, citing a 2021 moratorium on new hospice programs and the closure of 280 programs.

However, Nick Shirley also presents critical commentary suggesting that California’s efforts have been insufficient. The First Assistant U.S. Attorney, as presented in the video, disputes the governor’s claims, stating that fraud has not been taken seriously in California for over a decade. Nick Shirley reports that the attorney alleges California has overseen billions in fraudulent activity across homeless services, employment programs, and hospice services during the governor’s tenure. According to the video, the attorney further claims that California failed to implement required regulatory changes by a January 1st deadline and has been resistant to addressing systemic vulnerabilities in its licensing processes.

This case highlights ongoing concerns about oversight gaps in federal healthcare programs and state licensing procedures. As fraud investigations expand across the country, these arrests underscore the scale of alleged misconduct in California’s healthcare system and raise questions about regulatory enforcement at both state and federal levels.

In Nick Shirley’s Own Words

“They billed Medicare for over $4 million and no one did anything about it until we arrested them yesterday morning.”

“They couldn’t get the license. They put it under their daughter’s name.”

“They haven’t taken fraud seriously for over a decade in California. He has reigned over billions of fraud into the hundreds of billions of dollars under his watch.”