Dueling press conferences in downtown Los Angeles on Thursday revealed a massive federal and state crackdown on healthcare fraud, as high-ranking officials traded barbs over who deserved credit for the investigations and whether the legal actions were being used as political weapons. The enforcement actions, which target nearly $2 billion in fraudulent claims, highlighted a deepening rift between California Attorney General Rob Bonta and federal prosecutors over the rising cost and exploitation of public benefit programs.
At a 9:30 a.m. news conference, First Assistant U.S. Attorney Bill Essayli and a group of federal investigators announced a sweeping takedown of doctors and medical professionals. They allege these individuals lured vulnerable patients into unnecessary surgical procedures, sham treatment programs, and fraudulent hospice care, bilking taxpayers out of nearly $2 billion. During the announcement, Essayli took a sharp tone toward the state’s oversight. “California has a fraud problem,” he said, adding that “whether it’s hospice fraud, or healthcare fraud or election fraud, California does fraud best.”
An hour later, across the street, Bonta held his own news conference to fire back. He accused the federal prosecutor’s office of deliberately omitting the contributions of state investigators to the raid, including the arrest of a surgeon accused of performing invasive, unnecessary procedures for profit. Bonta characterized the federal rhetoric as part of a pattern of “improper politicization and weaponization” of medical investigations. “This isn’t a political game for us,” Bonta said. “This is about protecting taxpayer dollars, protecting the programs that sick and vulnerable Californians rely on, and protecting our state.”
Among the most disturbing allegations outlined in the charges was a scheme involving so-called “body brokers” in Texas. Prosecutors say two Los Angeles residents paid these brokers to recruit homeless individuals and those in 12-step programs from out of state. These victims were allegedly brought to sham sober living homes in California, signed up for expensive insurance policies, and then left to live in decrepit conditions. Colin McDonald, assistant U.S. attorney general for the National Fraud Enforcement Division, noted that these facilities did not provide recovery but rather “exploitation.”
Sober living homes have faced intense scrutiny in Southern California recently, particularly following high-profile incidents like the death of Presley Gerber at a Santa Monica facility in September. The latest charges also detailed an alleged “assembly line of fraud” involving an Anaheim cardiothoracic surgeon and a Tarzana chiropractor. The pair is accused of steering patients into repeated, unnecessary X-ray-guided procedures to score plaque from their arteries. Bonta noted that state investigators were responsible for the arrest of the surgeon, Dr. Harold Tabie, who is accused of collecting more than $100 million in Medicare claims.
In a separate case, three individuals in Los Angeles were charged with forcing seniors into hospice care even though they were not terminally ill. Federal officials described Los Angeles as “ground zero” for this specific type of hospice fraud. In total, the Justice Department announced that 15 defendants have been charged, including six medical professionals. Eight people have been arrested so far, with five expected to appear in federal court in Los Angeles. Other appearances are scheduled in the Northern District of Texas and the Northern District of Illinois.
The political tension surrounding these cases follows a broader trend where the Trump administration has increasingly targeted public benefits fraud in Democratic-led states. Proponents of these crackdowns argue that rates of Medicaid and Medicare fraud surged following the COVID-19 pandemic when oversight rules were relaxed to expand access to care. Essayli has frequently criticized Governor Gavin Newsom over these issues, previously labeling him the “king of fraud.”
Bonta used his time at the podium to announce his own set of state-level charges against more than 100 individuals. These cases involve alleged “double-dipping” in the In-Home Support Services (IHSS) program, which pays for the care of low-income disabled and elderly residents. The defendants allegedly took cash for caring for family members while Medicaid was simultaneously paying for those same family members to be treated in nursing homes or hospitals. While Bonta noted this fraud represents only a small fraction of the $30 billion IHSS budget, he emphasized that any abuse jeopardizes funding for the most vulnerable.
Despite the friction at the top levels of leadership, Bonta credited rank-and-file federal investigators for their work on the ground. He expressed frustration that the partnership was not properly acknowledged by the U.S. Attorney’s office, arguing that it would have been appropriate to identify the state teams involved in the joint investigations. “When we’re at our best, we’re putting politics aside,” Bonta said. “We’re not using fraud as a bludgeon, as a cudgel.”
