Attorney General Bonta Announces Seven Arrests for Hospice Fraud: My Office is On It!

California Department of Justice has been tackling hospice fraud for decades

OAKLAND — California Attorney General Bonta today announced the arrests of and filing of multiple felony charges against seven individuals for hospice fraud in Monterey County. Among the individuals arrested is the owner of Compassionate Touch Hospice and Spiritual Touch Hospice, two co-owners of Fountain Hospice, three doctors, and one nurse. The arrest and charges are the result of investigations by the California Department of Justice (DOJ) and the U.S. Department of Health Service Office of the Inspector General.
 
“Claims that California is overrun with fraud and doing nothing about it are simply false. This case proves it,” said Attorney General Bonta. “We want Californians to know that we are on it. We have been on it for decades. Fighting fraud is part of our regular, ongoing work, and over time we have built real expertise in identifying abuse, holding bad actors accountable, and recovering taxpayer dollars. To suggest otherwise is just wrong. Abusing systems meant to support Californians, and putting profits before people and their families won’t be tolerated — and it won’t fly under the radar. To those committing fraud: we’re watching, we’re investigating, and we’ll act. I am thankful for our amazing team and strong partnerships that help make this work possible.”
 
DOJ received a referral from the California Board of Registered Nursing after fraudulent activity was discovered and associated with Spiritual Touch Hospice and Compassionate Touch Hospice. DMFEA’s multi-year investigation revealed a sophisticated conspiracy to defraud Medi-Cal and Medicare and involved the owners, doctors and nurses of Spiritual Touch Hospice, Compassionate Touch Hospice, and Fountain Hospice. The defendants owned, operated, or worked for the three hospice companies simultaneously. They recruited, enrolled, and certified patients for hospice services who did not suffer from a terminal diagnosis. Some of these patients did not know hospice was intended for patients who were terminally ill, or that they were even enrolled in hospice. To avoid suspicion, the defendants transferred several patients between the three companies after six months and continued fraudulently billing for hospice services.
 
The total loss to Medi-Cal and Medicare is $3,211,419.79. On January 30, 2026, DMFEA filed felony charges in Monterey County Superior Court against Nimfa Molina (Head Nurse), Luis Artavia (Medical Director), Mark Samonte (Medical Director), Shomir Banerjee (Medical Director), Danny Lodevico (Owner), Flor Mora (Owner), and Christine Nugiud-Yem (Owner) alleging violations of false or fraudulent claims, conspiracy to commit a crime, with an aggravated white-collar enhancement.
 
The DMFEA is a California Department of Justice unit whose mission is to protect citizens and the state’s medical program from those who defraud taxpayers and divert state health care resources. The investigation would not have been possible without the collaboration of government agencies and those who reported the incidences of Medi-Cal fraud. If you suspect Medi-Cal fraud or elder abuse, you can report the incident at https://oag.ca.gov/dmfea/reporting.
 
The Division of Medi-Cal Fraud and Elder Abuse receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $77,652,892 for Federal Fiscal Year (FFY) 2026.  The remaining 25 percent, totaling $25,884,297 for FFY 2026, is funded by the California Attorney General’s Office.  FFY 2026 is from October 1, 2025 through September 30, 2026.

It is important to note that a criminal indictment contains charges that are only allegations against a person. Every defendant is presumed innocent until proven guilty.
 
A copy of the complaint can be found here.