A federal anti-fraud task force has suspended 447 hospices and 23 home health agencies due to suspected malfeasance totaling an estimated $600 million in the Los Angeles area.
The suspensions were facilitated by a federal anti-fraud task force led by Vice President J.D. Vance. The White House established the task force in March, which in addition to Vance includes the participation of 10 federal agencies, including the Departments of Justice, Health and Human Services, Homeland Security and Labor, among others.
Providers in California lauded the suspensions.
“We welcome today’s action to hold fraudulent hospice and home health agencies accountable that have exploited seniors and their families, under the guise of helping them, for far too long,” Sheila Clark, CEO of the California Hospice and Palliative Care Association said in a statement. “In California, scammers…
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Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.