Operation Never Say Die: America’s First Fraud Czar Nets 15 in $50M Medicare Hospice Crackdown

Within 24 hours of being sworn in, Colin McDonald’s new DOJ National Fraud Enforcement Division launched its first major strike — arresting eight people and charging 15 in a sweeping hospice fraud takedown that is just the beginning.

You’ve been paying into Medicare your entire working life. Every paycheck, a slice of your earnings goes toward a promise: that when you grow old, the system will be there for you. Now imagine a nurse walking up to an elderly couple enrolled in hospice care — care they never needed — and handing them $600 in a cash envelope. In return, her operation billed the federal government nearly $9.1 million.

That’s not a hypothetical. That’s a criminal charge unsealed in Southern California on April 2, 2026 — the very day after America’s first-ever fraud czar was sworn into office. If you were wondering whether the new DOJ National Fraud Enforcement Division would move fast, you have your answer.

From Oath to Handcuffs in Under 24 Hours

On April 1, 2026, Vice President J.D. Vance swore in Colin McDonald as the first-ever Assistant Attorney General for National Fraud Enforcement. McDonald was confirmed by the Senate 52–47 to lead the DOJ’s newly created National Fraud Enforcement Division, tasked with coordinating nationwide civil and criminal fraud investigations across agencies.

McDonald came in with a reputation. A veteran federal prosecutor with over a decade of experience, he built his name going after corrupt officials and large-scale fraud in the Southern District of California. His mission statement was clear: “If someone out there dares to steal your taxpayer dollars, we will find you, and we will prosecute you.”

Less than 24 hours later, Operation Never Say Die was executed.

What “Operation Never Say Die” Actually Found

Early on the morning of April 2, FBI SWAT teams fanned out across Southern California — Anaheim, Covina, Lakewood, Hollywood — and as far as Idaho and Texas. On the ground alongside them: the FBI, IRS Criminal Investigation division, and the Centers for Medicare and Medicaid Services. Dr. Mehmet Oz, the Trump-appointed CMS administrator, was personally present at the first arrest.

When the dust settled, eight people had been arrested and 15 defendants charged in connection with fraudulent schemes draining more than $50 million from the U.S. healthcare system.

Among the arrested: Lolita Beronilla Minerd, 55, a nurse from Anaheim accused of submitting more than $9.1 million in fraudulent hospice claims to Medicare — and personally paying $600-per-month cash kickbacks to elderly patients who didn’t qualify for hospice care. Roughly 85% of her hospice’s patients left the facility alive — nearly five times the national average of 17.2%.

Also arrested: Psychologist Gladwin Gill, 66, and his wife Amelou Gill, 70, of Covina — who allegedly collected more than $4 million through hospices registered under their daughter’s name to conceal Gladwin’s prior felony convictions. They used the proceeds for mortgage payments, car payments, and international travel.

Another defendant, Nita Palma, 76, was already incarcerated in a federal prison in Seattle on prior fraud charges — yet allegedly opened three additional fraudulent hospices while out on bond, using her husband’s name as cover.

“This is the beginning, not the end.” — U.S. Attorney Bill Essayli, Central District of California

Why the IRS Criminal Investigation Division Changes Everything

Most fraud prosecutions go after the crime. This one is going after the money — and that distinction matters enormously.

The inclusion of IRS Criminal Investigation (IRS-CI) signals a fundamental shift in strategy. IRS-CI doesn’t just prosecute fraud — it follows the financial trail, seizes assets, and pursues tax crimes layered on top of the original offense. It’s the same unit that took down Al Capone when conventional law enforcement couldn’t make charges stick.

When fraudsters know the IRS is in the room, they can’t just take a plea and walk away to the house they bought with stolen Medicare dollars. IRS-CI means the proceeds of the crime become part of the prosecution. That’s a deterrent with real teeth.

The Scale of the Problem Is Staggering

Southern California has become ground zero for one of the most brazen government fraud operations in modern American history. Between 2018 and 2024, the number of hospices in greater Los Angeles exploded from 722 to 1,799 — nearly a quarter of all hospices in the entire country, concentrated in one metro area.

A CBS News investigation found that more than 700 of those 1,800 hospices triggered multiple state-defined red flags for fraud. One Van Nuys office plaza had 89 hospices registered to a single address. Fifteen were incorporated in a single suite on a single day.

CMS has revoked Medicare approvals for 220 California hospices in just the last 10 weeks. The HHS Office of the Inspector General estimated suspected hospice fraud at $198.1 million in fiscal year 2023 alone.

These aren’t victimless crimes. Every dollar stolen is a dollar that doesn’t reach a legitimate patient in genuine need at the end of their life.

What Critics Get Wrong

Some have framed the crackdown as politically motivated — a tool to embarrass Governor Newsom ahead of a potential 2028 presidential run. But the evidence doesn’t support that framing. These cases were built on signed federal arrest warrants approved by independent judges. U.S. Attorney Essayli noted one case originated in 2022 but stalled: “Under the prior administration, fraud was not the focus.”

California AG Rob Bonta, a Democrat, has himself acknowledged the problem is real and brought criminal cases against more than 100 hospice defendants. The facts of Operation Never Say Die — cash envelopes, forged records, non-terminal patients enrolled in end-of-life care for profit — speak for themselves.

Accountability is not a partisan issue. Taxpayers of every political stripe paid into the system being looted.

How This Affects Every American Family

Medicare is not an abstraction. It is a promise made to American workers — that taxes withheld across decades of labor will fund their healthcare in old age. When fraudsters siphon billions from that system, they are not stealing from “the government.” They are stealing from your parents, your grandparents, and ultimately from you.

Dr. Oz put the stakes plainly: eliminating healthcare fraud could effectively double the life expectancy of Medicare’s trust fund, ensuring more Americans receive the care they were promised and paid for.

This Is Just the Beginning

The National Fraud Enforcement Division’s mandate extends far beyond California hospices. McDonald’s division has national jurisdiction over Medicaid, SNAP, USDA, and HHS fraud. In Minnesota alone, an estimated $9 billion in potentially fraudulent Medicaid claims has been identified.

For years, fraudsters bet that the federal government was too slow and too distracted to pursue them. Operation Never Say Die — launched within one day of the fraud czar’s swearing-in — sends a different message.

When the IRS, FBI, and DOJ are all working the same case, there is no clever exit.

America’s fraud czar is operational. The cases are open. And if the first 24 hours are any indication, the next wave won’t take long.