Dead Patients Used to Pay for Rolls Royce in $27 Million Los Angeles Hospice Fraud Bust [WATCH]

Federal authorities have arrested and charged multiple individuals in connection with a series of alleged healthcare fraud operations in Los Angeles, including a hospice scheme that prosecutors say generated approximately $27 million in fraudulent Medicare claims by using the identities of deceased individuals, as reported by the New York Post.

The arrests were announced as part of a nationwide healthcare fraud enforcement action unveiled by Acting Attorney General Todd Blanche in Washington, D.C. According to federal officials, the operation resulted in charges against hundreds of defendants across the country and involved alleged fraud totaling more than $6.5 billion.

During a press conference on Tuesday, Blanche said the Justice Department had charged 455 defendants in 45 states in what officials described as the largest healthcare fraud enforcement action in U.S. history.

“Fraudsters can no longer rip off American taxpayers,” Blanche said.

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“If you seek to harm or cheat Americans, we will find you, seize any assets, and prosecute you to the fullest extent of the law.”

Among those charged was Oren David Shachar, 59, of Van Nuys, California, who owns multiple hospice businesses in the Los Angeles area.

Federal prosecutors allege Shachar orchestrated a scheme involving the identities of deceased individuals in order to bill Medicare for hospice services that were never provided.

Authorities arrested Shachar on June 18 in Westwood, Los Angeles. Prosecutors allege he worked with Abraham Shin, 66, of Corona, and Jeannie Choi, 57, of Torrance, to obtain personal information belonging to deceased individuals.

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According to the indictment, Shachar allegedly paid between $1,000 and $3,000 for each identity and then used that information to submit fraudulent hospice claims to Medicare.

Federal prosecutors allege the scheme generated approximately $27 million in fraudulent reimbursements.

A 16-count indictment charges the defendants with submitting false claims for hospice services involving people who were either not terminally ill or had already died.

According to court documents, payments from the alleged scheme flowed through several hospice businesses controlled by Shachar, including Gentle Touch Hospice in Valley Glen, Oxford Hospice Care in Montclair, Art of Hospice in Encino, and Holly Trinity Hospice in Glendale.

Prosecutors also allege that money from the businesses was used to finance luxury purchases. Court filings state that Shachar used $15,000 from one hospice operation as a down payment on a lease-to-own Rolls-Royce Phantom, a vehicle with a reported sticker price approaching $530,000.

Shin and Choi are accused of helping facilitate the scheme. Choi was arrested on Monday and was scheduled to appear in federal court in Los Angeles on Tuesday.

Another Health Care Fraud Scheme, $27 million in California. Choi, Shin & Shakar charged. https://t.co/4nB7Idehpr

— Chicago Dreamer (@DreamerChicago) June 24, 2026

Federal officials say healthcare fraud remains a significant problem in California. FBI Director Kash Patel noted that nearly 800 of the 1,000 Medicare payment suspensions issued during the first half of the year involved California providers.

“That’s a lot of people,” Patel said, adding that “nearly 800 by the way, from one state, California.”

Health and Human Services Secretary Robert F. Kennedy Jr. said authorities have shut down approximately 800 hospice operations in Los Angeles as part of ongoing fraud investigations.

“One of the ways that we’ve been able to detect that fraud is, that in many of them, the patients never die, they live forever,” Kennedy said. “That’s not supposed to happen in hospices.”

Federal prosecutors also announced charges against Christina Mareik, 61, of Whittier. Authorities allege Mareik submitted nearly $270 million in fraudulent Medi-Cal claims for expensive prescription drugs that were either not medically necessary or were never provided.

According to prosecutors, Medi-Cal paid more than $178 million on those claims. Mareik allegedly worked with Paul Richard Randall, 67, of Orange, a patient marketer for Monte Vista Pharmacy.

Randall pleaded guilty to wire fraud on April 7 and faces up to 30 years in federal prison.

Federal agents seized luxury vehicles and rare baseball cards connected to the alleged scheme. Mareik was released on a $100,000 bond and is scheduled to be arraigned on July 23.

First Assistant U.S. Attorney Bill Essayli said healthcare programs exist to serve vulnerable Americans rather than enrich criminals.

“Public health programs are intended to support the elderly, the ill, the needy, and other vulnerable members of our communities,” Essayli said. “It is not there to enrich fraudsters.”

Essayli also delivered a warning to individuals involved in healthcare fraud.

“We will find you. We will arrest you. And we will seek long prison sentences,” he said.

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