California authorities have arrested five individuals as part of a significant crackdown on a hospice fraud ring that allegedly defrauded the state of $267 million through fraudulent Medi-Cal billing. The operation, dubbed "Operation Skip Trace," targeted ten locations in Southern California and involved charges against a total of 21 suspects, including conspiracy to commit health care fraud, money laundering, and identity theft. Officials stated that suspects purchased identifying information from the dark web to enroll non-residents in Medi-Cal, subsequently using straw owners to acquire 14 state-licensed hospice companies and bill for non-existent services. This investigation follows a CBS News analysis revealing over 700 hospices in LA County exhibiting potential fraud indicators and a separate federal investigation charging eight individuals for defrauding the healthcare system of over $50 million.