California Attorney General Rob Bonta has announced felony charges against the owner and facility manager of Granite Bay Residential Care Home. The home, located in Placer County, serves adults with special healthcare needs. The charges relate to alleged Medi-Cal fraud exceeding $500,000.
The investigation found that between January 2020 and September 2022, the defendants billed Medi-Cal for services not provided. They reportedly received overpayments totaling more than half a million dollars. Additionally, it was discovered that program funds were misused for personal luxury purchases. Items such as two iPhones and two MacBook Pros were allegedly stolen using these funds.
Attorney General Bonta stated, “When providers defraud Medi-Cal, it not only undermines the integrity of the program, but it also poses a significant threat to the patients who rely on Medi-Cal for their health and well-being.” He emphasized the California Department of Justice's commitment to holding accountable those who commit Medi-Cal fraud.
The complaint was filed in Sacramento County Superior Court. Charges include False or Fraudulent Claims, Conspiracy to Commit False or Fraudulent Claims, and Grand Theft by Embezzlement.
It is crucial to remember that criminal charges must be proven in court. All defendants are presumed innocent until proven guilty.
The Division of Medi-Cal Fraud and Elder Abuse (DMFEA) is responsible for investigating and prosecuting abuse, neglect, and fraud against elderly and dependent adults in California. DMFEA also targets those committing fraud against the Medi-Cal program.
For Federal fiscal year 2025, DMFEA receives 75% of its funding from the U.S. Department of Health and Human Services through a grant totaling $69,244,976. The remaining 25% is funded by the State of California. Fiscal year 2025 spans from October 1, 2024, to September 30, 2025.