Filipino woman, spouse among defendants in $50M U.S. health care fraud crackdown

A Filipino lawful permanent resident and her husband are among those charged in a sweeping U.S. federal crackdown on health care fraud schemes that allegedly defrauded Medicare of millions of dollars.

Nita Almuete Paddit Palma, 76, a Filipino national and lawful permanent resident, along with her husband Adolfo Catbagan, 68, of Glendale, are facing multiple federal charges tied to an alleged $4.8 million hospice fraud scheme, according to the U.S. Department of Justice. 

Prosecutors allege that from June 2022 to April 2024, Palma and Catbagan operated at least three hospice care companies in Glendale One Up Hospice Care Inc., Rosewood Hospice and Palliative Care Inc., and Advance Hospice and Palliative Care Inc. despite Palma being legally barred from running such businesses.

Authorities say Palma used Catbagan as the nominal owner and CEO to conceal her involvement and bypass Medicare restrictions. The couple allegedly submitted fraudulent claims for hospice services for patients who were not terminally ill, a key requirement for eligibility under Medicare.

Investigators also allege that some listed physicians did not actually treat the patients, raising further concerns about fabricated or falsified medical documentation.

The scheme allegedly resulted in at least $4.2 million in payments from Medicare, part of the broader $4.8 million in claims submitted by the defendants.

Palma is no stranger to health care fraud charges. Authorities say she is a repeat offender, previously convicted in similar cases and was even free on bond in another hospice fraud case when the alleged scheme took place.

Federal prosecutors have charged the couple with conspiracy to commit wire fraud and health care fraud, along with multiple counts of health care fraud.

The case is part of a larger federal enforcement effort targeting health care fraud nationwide, with officials warning that those who exploit vulnerable systems like hospice care will face serious consequences.

OTHER DEFENDANTS AND SCHEMES

The case is part of a wider enforcement action involving several other defendants accused of similar fraud schemes:

• Lolita Beronilla Minerd, a licensed vocational nurse, allegedly submitted more than $9.1 million in fraudulent hospice claims through a Los Angeles-area company, including billing for patients who were not terminally ill.

  
  

• Married couple Gladwin Gill, a psychologist, and Amelou Gill, a registered nurse, are accused of submitting over $5.2 million in false claims and using the proceeds for personal expenses.

  
  

• Evelyn Tindimobuna, another nurse, allegedly billed Medicare $3.8 million for hospice services that were either unnecessary or never provided.

  
  

• Ivan Verne Lauritzen, a hospice executive, is accused of falsifying documents and submitting improper claims, with unusually high patient discharge rates raising red flags.

  
  

In a separate but related scheme, defendants Tolu Aulava-Moala, John Nicola, Crysta Richter, and John Keohuloaallegedly defrauded a labor union health plan of $19 million by billing for unnecessary or non-existent chiropractic and therapy services.

Additional cases include chiropractor Gregory Cartmell and associate Vincent Surace, who allegedly used identity theft to submit more than $9 million in fraudulent claims, and Sonia Griffen, accused of submitting nearly $5 million in false billing through a wellness company.

Authorities also charged Young Joo Ko in a separate scheme involving falsified medical documents tied to immigration applications.

Federal officials emphasized that the cases reflect a widespread abuse of the U.S. health care system, including the exploitation of hospice care programs intended for critically ill patients.

If convicted, the defendants face up to 10 to 20 years in federal prison, along with additional penalties for related charges.