LA Hospice Owner Used Dead Patients to Fund Rolls Royce in $27M Fraud

A Los Angeles hospice owner allegedly stole the identities of dead patients to bill Medicare for services never provided — then used the proceeds to fund a luxury car collection that included a Rolls Royce Phantom.

He is among 10 defendants charged this week as part of a national healthcare fraud takedown announced by acting Attorney General Todd Blanche.

The $27 Million Medicare Scheme

Oren David Shachar, 59, of Van Nuys, owns at least four hospices in the Los Angeles area.

Federal prosecutors in the Central District of California charge that Shachar conspired with marketers Abraham Shin, 66, of Corona, and Jeannie Choi, 57, of Torrance, to submit false claims to Medicare worth approximately $27 million. The alleged scheme involved billing for hospice services provided to people who were not terminally ill, and for those who were already dead — with Shachar allegedly paying kickbacks to a local funeral home for the names of deceased individuals.

According to The California Post's reporting, prosecutors allege that $15,000 was taken directly from one of Shachar's hospices as a down payment on a lease-to-own Rolls Royce Phantom — a vehicle with a sticker price of approximately $530,000.

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A Separate $270 Million Scheme in the Same Sweep

Shachar's case was announced alongside a second, separate Los Angeles fraud case involving an alleged $270 million Medi-Cal scheme.

Christina Mareik, 61, of Whittier, was arrested on June 17 on charges of submitting bogus Medi-Cal claims for expensive prescription drugs that were either not medically necessary or never provided. Medi-Cal paid more than $178 million on the fake drug claims before investigators moved in.

Mareik allegedly worked with Paul Richard Randall, 67, of Orange, a patient marketer for Monte Vista Pharmacy, to generate the fraudulent billing. Randall pleaded guilty on April 7 to wire fraud and faces up to 30 years in federal prison. Federal authorities seized multiple luxury cars and rare baseball cards in connection with the scheme.

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The National Scale of the Takedown

Tuesday's press conference in Washington was the public face of what the DOJ described as a record-breaking enforcement action.

Acting Attorney General Todd Blanche announced that federal prosecutors this year have charged medical fraudsters accused of stealing more than $6.5 billion nationwide — including what the department called the largest single healthcare fraud arrest operation in US history, bringing in 455 defendants across 45 states.

First Assistant United States Attorney Bill Essayli put the purpose plainly: "Public health programs are intended to support the elderly, the ill, the needy, and other vulnerable members of our communities. It is not there to enrich fraudsters."

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What Comes Next

Shachar and Shin were arrested on June 18 and arraigned in US District Court in Los Angeles. Choi was arrested Monday and appeared in court Tuesday.

Together, all three face a 16-count indictment.

Mareik is free on $100,000 bond, with her arraignment scheduled for July 23.

Key Takeaways

• Oren David Shachar, 59, owner of at least four LA hospices, faces a 16-count federal indictment alleging $27 million in Medicare fraud by billing for dead patients' identities.

• Shachar allegedly used $15,000 from a hospice account as a down payment on a Rolls Royce Phantom worth approximately $530,000.

• Co-defendants Abraham Shin and Jeannie Choi are charged in the same conspiracy, involving kickbacks to a funeral home for deceased patients' names.

• A separate defendant, Christina Mareik, faces charges over $270 million in fake Medi-Cal drug claims, with $178 million paid out before the scheme was detected.

• Acting AG Todd Blanche announced the DOJ has charged healthcare fraudsters with stealing more than $6.5 billion nationwide this year — including a record 455-defendant sweep across 45 states.

• Paul Randall, Mareik's alleged co-conspirator, has already pleaded guilty and faces up to 30 years.

Sources

• The California Post — LA Hospice Fraud: Oren Shachar, Dead Patients, and the Rolls Royce

• Department of Justice — Central District of California Healthcare Fraud Charges

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