Federal agents in the United States have arrested Oren David Shachar, a 59-year-old Israeli citizen living in Los Angeles, on suspicion of leading a sophisticated Medicare fraud scheme worth about $27 million. Prosecutors say the owner of four hospice facilities used the identities of dead people to submit false claims for hospice services that were never provided.
The 16-count indictment says Shachar worked with local marketing people and funeral home employees, including Abraham Shin, 66, and Ginie Choi, 57. According to the federal case, he paid them bribes and commissions of $1,000 to $3,000 for each deceased person’s identity.
Authorities say Shachar then used the stolen personal details to bill the U.S. government for medical hospice care that had not been delivered, including for supposed patients who were already dead. Investigators also allege he spent the stolen money on luxury goods and a lavish lifestyle.
Among the specific transactions cited in the complaint, prosecutors say Shachar withdrew $15,000 from a hospice account to cover a lease down payment on a Rolls-Royce Phantom valued at about $530,000. Shachar and Shin were brought before the federal court in Los Angeles, and Choi was also arrested this week. The arrest is part of a broader nationwide crackdown on health care fraud networks. Assistant U.S. Attorney General Bill Essayli said public health programs are meant to support the elderly, sick, needy, and vulnerable, and “they are not meant to enrich scammers.”
