An Israeli citizen living in California has been arrested and charged in Los Angeles with defrauding Medicare of $27 million. The defendant, Oren David Shachar, 59, from Van Nuys, is accused of running four hospice clinics, Holly Trinity, Gentle Touch, Oxford and Art of Hospice, while billing for patients who were not terminally ill or had already died.
According to the 16-count federal indictment, Shachar worked with marketers to submit false hospice claims. Prosecutors say one major method involved stealing identities of dead people: he allegedly bribed funeral home employees for personal details, then backdated medical records to make it appear hospice care had been provided before death. Court filings say he paid $1,000 to $3,000 for each deceased person’s identity.
Authorities also allege he tried to avoid detection by limiting the dead people he targeted to those who died at home, within five days of being sought, and who were not already enrolled in another hospice. When he recruited living patients, prosecutors say he misled them about hospice care, concealed that it could block other necessary treatment, and kept them enrolled with monthly cash bribes of up to $400, plus food, alcohol, televisions and furniture. He also allegedly paid $100 or $200 for each additional referral.
Investigators say the fraud funded a lavish lifestyle, including a $500,000 Rolls-Royce Phantom. Two alleged associates, Abraham Shin, 66, and Ginie Choi, 57, were also arrested for allegedly selling patient information. FBI official Patrick Grandy said exploiting grieving families and stealing from health programs goes “far beyond fraud.” The case is part of a nationwide Justice Department crackdown led by Vice President JD Vance that has exposed more than $6.5 billion in health-care fraud, led to charges against 455 defendants, and seized over $182 million in assets. Officials said the sweep also produced arrests and indictments in Southern California and other states, including opioid, lab and hospice schemes.
