The charges stem from an investigation the DOJ dubbed Operation Skip Trace. Investigators executed search and arrest warrants at twelve locations in Southern California on Wednesday, April 8, according to the announcement, and seized two handguns along with the cash.

According to the AG's office, individuals purchased personal identifying information for non-California residents from the dark web and enrolled those identities in Medi-Cal through Covered California. Fourteen hospice companies were purchased by straw owners, who then billed for services on the stolen identities, the office said. "No hospice services were ever rendered," the release states.

"Over the life of this fraud scheme, not a single legitimate hospice service was ever provided yet millions were billed in a brazen, calculated scheme that exploited the Medi-Cal system," Bonta said. "This wasn't a mistake or a loophole; it was deliberate fraud."

The 21 defendants were charged across three criminal complaints with conspiracy to commit health care fraud, health care fraud, money laundering, and identity theft, the AG's office said. Prosecutors also added an aggravated white collar crime enhancement and an aggravated money laundering enhancement.

"Fraud is a direct attack on Medi-Cal members who rely on us for care, and we will not stand for it," said California Department of Health Care Services Director Michelle Baass. She said DHCS "identified irregularities early, stopped further improper payments, and suspended the fraudulent providers."

Governor Gavin Newsom also weighed in on the announcement. "We hold accountable to the fullest extent of the law anyone who tries to rip off taxpayers and take advantage of public programs, particularly those as sensitive as hospice care," Newsom said. He added, "Since these are state charges, Donald Trump cannot pardon these individuals in exchange for campaign donations."

California Health and Human Services Secretary Kim Johnson said DHCS "moved swiftly to stop these payments, disenroll fraudulent accounts, and refer perpetrators for criminal prosecution."

The AG's office said that during Bonta's tenure, the DOJ has conducted 294 hospice-related investigations, filed 119 hospice-related criminal cases, and secured 51 hospice-related convictions. The office noted that "a criminal indictment contains charges that are only allegations against a person" and that "every defendant is presumed innocent until proven guilty."