Overview

A significant hospice fraud scheme has reportedly cost California's medical system approximately $267 million, according to state officials. The investigation, named Operation Skip Trace, has led to the arrest of 21 individuals, including five key conspirators.

California Attorney General Rob Bonta disclosed the details of the case, highlighting the elaborate nature of the fraud that involved the exploitation of the Medi-Cal system. The arrested individuals are accused of engaging in various felonies, including insurance fraud and identity theft.

Key details

  • Twenty-one individuals are facing charges related to a hospice fraud scheme.
  • The scheme is estimated to have defrauded California's medical system of $267 million.
  • Attorney General Rob Bonta announced the investigation results on Thursday.
  • The investigation was named Operation Skip Trace.
  • Five principal conspirators were arrested on multiple felony charges.
  • Charges include insurance fraud, money laundering, conspiracy, and identity theft.
  • The defendants allegedly purchased personal identifying information from the dark web.
  • They enrolled non-residents in Medi-Cal without their consent.
  • The conspirators bought hospice companies and billed the state for non-existent services.
  • Bonta stated that no legitimate hospice services were provided during the fraud.
  • Robert Sabiron Rubillar and Liezyl Rubillar are identified as the masterminds of the scheme.
  • Search warrants were executed at ten locations across Southern California.

Context

The fraud scheme has raised concerns about the integrity of the Medi-Cal system and the potential impact on legitimate healthcare services for those in need. The case illustrates the vulnerabilities within the system that can be exploited by criminal enterprises.

What happens next

The arrested individuals will face legal proceedings, and if convicted, they could each face significant prison sentences, potentially exceeding a decade.

What we don't know yet

Details regarding the total number of victims and the specific outcomes of the legal proceedings against the arrested individuals remain unconfirmed.