The California Attorney General announced the grand jury indictment of Southern California healthcare provider, Gerardo Santillan, along with seven other individuals, for defrauding the state Medi-Cal program of nearly $60 million through their operation of three home health agencies between 2016 and 2022.

Following grand jury proceedings, Gerardo Santillan, Ruth Elizabeth Eley, Marisol, Rodriguez, Christopher Gonzalez, Vivien Kono, Maria Consorcia Pagtakhan Lim, Vivian Bonotan Pagtakhan, and Vartan Akopyan, were indicted on 23 felony charges. The charges include conspiracy to commit insurance fraud, conspiracy to commit money laundering, grand theft, Medi-Cal fraud, insurance fraud, and money laundering.

Due to a prior conviction for defrauding the Medi-Cal program in August 2018, Santillan had been excluded from further participation in the Medi-Cal program.

It is alleged in the indictment that Santillan nonetheless continued his fraudulent activities by using other home health agencies to submit fraudulent claims for medical services to Medi-Cal. Those home health agencies include the Four P’s Health Services, dba Covenant Home Health, Angel Care Home Health and Neighborhood Home Health Care, Inc.

Among the various entities involved, Santillian allegedly entered into a General Services Agreement with defendants Ruth Elizabeth Eley and Four P’s Health Services, dba Covenant Home Health. The two directed all Medi-Cal operations at Four P’s, by directing employees, managing patients, making business decisions. and submitting false claims to Medi- Cal. Billing at Four P’s increased after Santillantook over all Medi-Cal operations at Four P’s, billing the Medi- Cal Program $26.2 million and Medi-Cal paying Four P’s a total of$23.8 million despite being suspended from Medi-Cal.

The owners and operators of Angel Care Home Health, permitted defendants Santillan and some of his co-defendants to take over the Medi-Cal operation at Angel Care Home Health in exchange for kickback payments. Billings increased after they took over Angel Care took over all Medi-Cal operations at Angel Care Home Health, billing the Medi-Cal Program over $85 million and Medi-Cal paying Angel Care Home Health over $27 million.

Kono, Lim, and Nicholas allegedly received over $4.8 million in kickbacks from Medi-Cal payments for claims submitted by defendants Santillian and his co-conspirators on behalf of Angel Care Home Health.

“We will not tolerate fraud where individuals take advantage of Medi-Cal to profit, potentially jeopardizing critical, necessary medical services our most vulnerable residents rely on,” said Attorney General Bonta. “Today’s action is possible due to my team’s efforts to hold accountable those that defraud Medi-Cal, and we will continue to do so.”