On April 2, 2026, the FBI announced “Operation Never Say Die” — a sweeping crackdown on hospice fraud schemes across Southern California. Among the 15 people charged: Lolita Minerd, a 65-year-old licensed vocational nurse from Anaheim, who allegedly submitted $9.1 million in fraudulent Medicare hospice claims. For Orange County families, this case is a stark reminder that not every provider flying a healthcare flag has your loved one’s best interests at heart.
What Is Operation Never Say Die?
Operation Never Say Die is a coordinated federal enforcement action led by the FBI, the U.S. Department of Justice, and the U.S. Department of Health and Human Services Office of Inspector General. It was carried out in partnership with the Vice President’s Task Force to Eliminate Fraud.
The operation targeted nine separate fraud investigations, most of them involving hospices, across Southern California. In total, 15 individuals were charged and 8 were arrested on April 2, 2026. Prosecutors put the intended losses at more than $50 million, mostly in Medicare claims.
The schemes shared a common playbook: recruit patients who weren’t terminally ill, enroll them in Medicare hospice benefits they didn’t need, bill the government for services that were either never provided or medically unnecessary, and pocket the payments.
The Orange County Connection: Lolita Minerd of Anaheim
For families in Orange County, the most alarming defendant in Operation Never Say Die is Lolita Minerd, 65, of Anaheim. According to the federal criminal complaint, Minerd was a licensed vocational nurse (LVN) who owned and operated a hospice agency based in Artesia.
How the Scheme Worked
Federal prosecutors allege that Minerd’s operation followed a brazen pattern:
- Recruitment through paid marketers: Prosecutors say Minerd paid kickbacks to marketers for referring beneficiaries who were not terminally ill and did not qualify for hospice care. Many shared common addresses and lived far from the facility, and one couple was first approached at a market.
- Cash payments to patients: That couple was allegedly promised that everything would be free, plus $300 per month in cash to enroll in her hospice program.
- $9.1 million in fraudulent claims: Minerd’s hospice submitted $9.1 million in false Medicare claims for hospice services provided to patients who did not meet the eligibility criteria for end-of-life care.
- $8.5 million received: Medicare paid out approximately $8.5 million on these fraudulent claims before the scheme was uncovered.
The Smoking Gun: 85% Non-Death Discharge Rate
One of the most damning pieces of evidence cited by federal investigators is Minerd’s non-death discharge rate of approximately 85%. In legitimate hospice care, patients are enrolled because they have a terminal illness with a life expectancy of six months or less. The national average non-death discharge rate — meaning patients who leave hospice alive — is roughly 17%.
When 85% of a hospice’s patients are being discharged alive, it signals that the vast majority were never terminally ill in the first place. They were healthy people enrolled fraudulently so the provider could bill Medicare.
Why This Matters for Orange County Families
Hospice fraud doesn’t just steal taxpayer money. It causes real harm to real people:
- Patients receive inappropriate care: Healthy individuals enrolled in hospice may be given unnecessary medications, including powerful opioids and sedatives, to make their charts look legitimate.
- Truly terminal patients lose access: When fraudulent providers saturate the market, legitimate hospice agencies face increased scrutiny and reduced Medicare reimbursements, making it harder to serve patients who genuinely need end-of-life care.
- Families are manipulated: Unscrupulous recruiters target vulnerable communities — often elderly, low-income, or non-English-speaking populations — with promises of free services and cash payments.
- Medicare trust fund is depleted: Every dollar stolen from Medicare is a dollar that can’t fund legitimate healthcare for seniors and disabled Americans.
For families in Anaheim, Fullerton, Buena Park, Cypress, and surrounding North Orange County communities, the Minerd case is especially concerning. The hospice was operated out of Artesia — just minutes from the OC border — and its owner lived in Anaheim.
How to Spot Hospice Fraud: Red Flags Every Family Should Know
Operation Never Say Die provides a textbook of warning signs. Here’s what to watch for:
1. Unsolicited Door-to-Door or Public Recruitment
Legitimate hospice care begins with a physician’s referral based on a terminal diagnosis. If someone approaches you at a market, shopping center, church, or your front door offering “free hospice services,” that’s a major red flag. No legitimate hospice recruits patients this way.
2. Cash Payments or Gifts to Enroll
Under the federal Anti-Kickback Statute, it is illegal for healthcare providers to offer money, gifts, or anything of value to induce patients to enroll in Medicare-covered services. The $300/month payments Minerd allegedly offered are a textbook violation.
3. No Terminal Diagnosis
Medicare hospice benefits are reserved for patients with a life expectancy of six months or less, as certified by a physician. If your loved one is generally healthy and a hospice provider says they still qualify, get a second opinion immediately.
4. Pressure to Sign Quickly
Fraudulent providers often pressure families to sign enrollment paperwork on the spot, before they can research the agency or consult with their own doctor. Legitimate providers welcome questions and give families time to make informed decisions.
5. Services That Never Materialize
Some fraudulent hospices bill Medicare for services — nursing visits, social worker consultations, chaplain visits — that never actually happen. If your loved one is enrolled in hospice but rarely sees a caregiver, report it.
The Difference Between Hospice Care and Home Care
One reason hospice fraud confuses families is that many people conflate hospice care with home care. They are fundamentally different services:
At At Home VA Staffing, we provide non-medical in-home care — personal care, respite care, companionship, and dementia care — for families across Orange County. We are not a hospice provider. Our services help people live fuller, more independent lives at home, and we operate with complete transparency about what we offer and how we’re paid.
How to Report Suspected Hospice Fraud
If you suspect a hospice provider is committing fraud — whether they recruited your loved one inappropriately, billed for services never provided, or offered cash to enroll — here’s where to report it:
- HHS Office of Inspector General Hotline: 1-800-HHS-TIPS (1-800-447-8477) or oig.hhs.gov/fraud/report-fraud
- FBI Los Angeles Field Office: (310) 477-6565
- Medicare Fraud Hotline: 1-800-MEDICARE (1-800-633-4227)
- California Department of Public Health: File a complaint at cdph.ca.gov
- Orange County District Attorney: (714) 834-3600
Federal whistleblower laws protect individuals who report Medicare fraud. Under the False Claims Act, whistleblowers may even be entitled to a percentage of the funds recovered by the government.
What Happens Next in Operation Never Say Die
The 15 individuals charged in Operation Never Say Die face federal charges including health care fraud, wire fraud and conspiracy. According to the Justice Department, health care fraud carries a statutory maximum of 10 years in federal prison and wire fraud up to 20 years, and convicted defendants also face restitution.
For Lolita Minerd specifically, the $9.1 million in alleged false claims and $8.5 million in received payments mean she faces substantial prison time and financial penalties if found guilty. The case is being prosecuted by the U.S. Attorney’s Office for the Central District of California.
This operation is part of a broader federal crackdown on healthcare fraud. In fiscal year 2025, the Justice Department recovered a record $6.8 billion under the False Claims Act, more than $5.7 billion of it from the health care industry. For more on recent enforcement actions affecting Orange County home care, see our earlier coverage: California Home Care Fraud Crackdown 2026.
Protecting Your Family: Choosing a Legitimate Home Care Provider
The best defense against healthcare fraud is choosing providers carefully. Here’s how Orange County families can protect themselves:
- Verify licensing: Check any provider against the California Department of Social Services Care Facility Search database.
- Ask for references: Legitimate agencies welcome questions and can provide references from current clients and healthcare professionals.
- Understand what you’re signing: Never sign enrollment paperwork on the spot. Take it home, review it, and consult with your physician.
- Be skeptical of “free” offers: If a provider offers cash, gifts, or free services that seem too good to be true, they probably are.
- Review Medicare statements: Check your Medicare Summary Notices for services you or your loved one didn’t receive.
- Choose local, transparent providers: Work with agencies like At Home VA Staffing that are rooted in the Orange County community and operate with full transparency.
Test Your Knowledge: Hospice Fraud Awareness Quiz
1. What was the name of the FBI operation targeting SoCal hospice fraud?
2. How much did the Anaheim nurse allegedly submit in fraudulent Medicare claims?
3. What is the national average non-death discharge rate for hospice?
4. What is a major red flag that a hospice provider may be committing fraud?
5. Where should you report suspected Medicare hospice fraud?
Frequently Asked Questions
Operation Never Say Die is a coordinated FBI enforcement action announced on April 2, 2026, targeting hospice fraud in Southern California. It involved nine separate investigations, resulted in 15 individuals being charged, and charged more than $50 million in intended health care fraud losses.
Lolita Minerd, 65, of Anaheim is a licensed vocational nurse (LVN) who owned and operated a hospice agency in Artesia. She is charged by federal criminal complaint with health care fraud; prosecutors say her hospice submitted more than $9.1 million in fraudulent Medicare claims. They allege she paid kickbacks to marketers and beneficiaries, including $300 a month in cash to each member of a couple first approached at a market.
Hospice fraud puts healthy patients at risk by enrolling them in end-of-life care programs they don’t need. They may receive unnecessary medications, including opioids. It also depletes Medicare funds, making it harder for truly terminal patients to access the care they deserve.
No. At Home VA Staffing provides non-medical in-home care services including personal care, respite care, companionship, and dementia care. We are not a hospice agency. Our services help people live more independently at home and are available to anyone who needs assistance, regardless of medical diagnosis.
Be cautious. Legitimate hospice enrollment always starts with a physician referral based on a terminal diagnosis. If someone approaches you unsolicited — at a store, your home, or anywhere else — offering free hospice services or cash to enroll, decline and report it to the HHS OIG Hotline at 1-800-447-8477.
Federal health care fraud carries a statutory maximum of 10 years in prison (wire fraud, up to 20). Convicted defendants also face restitution — repaying what Medicare lost — plus fines and exclusion from federal healthcare programs, for at least five years.
Hospice Fraud Protection Checklist for OC Families
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