A man faces federal charges for allegedly stealing the identities of dead people to bill for hospice services that were never provided. The scheme reportedly netted nearly and funded a luxury car collection including a .
Van Nuys resident Oren David Shachar, 59, faces 16 federal counts for allegedly billing Medicare $27 million for hospice care provided to dead or ineligible patients. Shachar purchased identities from funeral home workers and funneled proceeds into luxury purchases including a Rolls-Royce Phantom.
A man faces federal charges for allegedly stealing the identities of dead people to bill for hospice services that were never provided. The scheme reportedly netted nearly and funded a luxury car collection including a .
Oren David Shachar, 59, was arrested on June 18 in Westwood and arraigned in U.S. District Court in Los Angeles. He pleaded not guilty. His trial is scheduled for August 11, according to the U.S. Department of Justice.
Shachar owned at least four hospice companies in the Los Angeles area. They include Gentle Touch Hospice in Valley Glen, Oxford Hospice Care in Montclair, Art of Hospice in Encino, and Holly Trinity Hospice in Glendale. Federal prosecutors say he used these businesses to submit false claims from 2021 through March 2026.
"Payments on the false claims went to at least four hospices controlled by Shachar," the feds said.
Shachar allegedly paid funeral home workers Abraham Shin, 66, of Corona, and Jeannie Choi, 57, of Torrance, for the personal information of deceased individuals. Prosecutors charge that Shachar paid between $1,000 and $3,000 for each dead person's identity.
Shin and Choi were also arrested. Shin was taken into custody on June 18 alongside Shachar. Choi was arrested on Monday and is expected to appear in federal court Tuesday. All three face a 16-count indictment that includes health care fraud and aggravated identity theft.
Federal documents state that Shachar's hospices fraudulently billed Medicare approximately $27,731,000 and received $26,908,000. Shachar allegedly funneled some of those funds into luxury purchases.
Prosecutors say Shachar took $15,000 directly from one of his hospices for a down payment on a lease-to-own Rolls-Royce Phantom. The vehicle carries a sticker price of nearly $530,000.
Shachar's arrest was part of the 2026 National Health Care Fraud Takedown. The U.S. Department of Justice announced the operation on Tuesday. It resulted in charges against 455 defendants across 45 states. The schemes involved more than $6.5 billion in false claims.
Acting Attorney General Todd Blanche called it the greatest whole-of-government effort to combat health care fraud in U.S. history.
"Fraudsters can no longer rip off American taxpayers," Blanche said at a press conference from Department of Justice Headquarters on Pennsylvania Avenue. "If you seek to harm or cheat Americans, we will find you, seize any assets, and prosecute you to the fullest extent of the law."
FBI Director Kash Patel noted that much of the fraud occurs in California. Federal authorities suspended Medicare payments to 1,000 people in the first half of the year. Nearly 800 of those suspensions originated in California alone.
Secretary of Health and Human Services Robert F. Kennedy Jr. called Los Angeles a "hive of hospice fraud." He pointed out that federal authorities have closed down 800 hospices in Los Angeles alone.
"One of the ways that we've been able to detect that fraud is, that in many of them, the patients never die, they live forever," Kennedy said. "That's not supposed to happen in hospices."
First Assistant United States Attorney Bill Essayli warned that federal authorities will maintain pressure on medical fraudsters.
"Public health programs are intended to support the elderly, the ill, the needy, and other vulnerable members of our communities," Essayli said. "It is not there to enrich fraudsters. We will find you. We will arrest you. And we will seek long prison sentences."
Shachar remains in federal custody. Shin is also detained. Choi was arrested on Monday and faces arraignment.
This article was generated with AI assistance.