Two San Bernardino County hospice companies have defrauded the state of $4.2 million since 2013 by falsely filing for Medi-Cal and Medicare benefits, a criminal lawsuit led by the Attorney General in San Bernardino Superior Court claims.
Most of the defendants pleaded not guilty Feb. 22, but some have not yet been arraigned. The defendant’s lawyer contacted by Follow Our Courts did not return a request for comment.
Two defendants, unnamed by the Attorney General, are still at large as of last Thursday.
The 16 defendants face a combined 54 criminal counts, including 21 for tax evasion, one for conspiracy, two for insurance fraud, one for fraudulent claims, two for grand theft, nine for identity theft and 18 for money laundering.
Defendants and spouses Ralph Canales and Rochell Paragados Canales joined with spouses Giovanni and Maureen Ibale to operate the Sterling Hospice Care center in Colton and New Hope Hospice in Upland, according to the complaint. Both hospice centers were incorporated in 2013, according to state records. Hospice care is intended to provide comfort to those believed to die within six months, and is not intended to find a cure.
The couples hired defendant Dr. Romeo Rodriguez as the medical director for both hospices, who, according to the complaint, approved patients for hospice regardless of whether they were dying.
Allegations
The owners also hired nurse Rose Lee, and paid her kickbacks to bring in patients whether they were eligible for hospice, the complaint claims.
Six of the defendants received kickbacks between $3,000 and $60,000 for referring hospice patients who were not at the end of life, the complaint claims.
The company’s accountant, defendant Shemei Postrero, illegally paid kickbacks to the referrers, the complaint claims.
The owners also hired nurse Rose Lee, and paid her kickbacks to bring in patients whether or not they were eligible for hospice, the complaint claims. The complaint also charged Lemuel Ursales, director of nursing, and Sherwin Canales, patient care manager and Ralph’s brother, for being involved in the conspiracy and for failing to disclose events.
Also included in the complaint, the Attorney General alleges the following:
- Six of the defendants received kickbacks between $3,000 and $60,000 for referring hospice patients who were not at the end of life.
- The company’s accountant, defendant Shemei Postrero, illegally paid kickbacks to the referrers.
- Some of the patients had no idea they were placed on hospice, and the hospice companies used their Medicare and Medi-Cal cards without their knowledge.
- The two hospice companies would swap patients to continue receiving hospice funds from the state and to deceive the authorities.
- Some of the ill-gained money was deposited directly into the owner’s personal bank accounts, and was used to buy $35,000 worth of fashion merchandise from the New York fashion company Hermes and $100,000 worth of real estate in the Philippines.
- The hospice owners fraudulently supplied tax return information.
The patient’s enrollment in hospice care forfeited the patient’s future rights to life saving medication, the Attorney General’s Office claimed in a press release.
The Sterling Hospice Care, Inc. was dissolved in August, 2021, due to a vote by the shareholders, and the Upland New Hope Hospice, Inc. was suspended by the Franchise Tax Board at an unknown date, according to the Secretary of State’s business search.
Parties and case numbers
San Bernardino Superior Judge Corey Lee presides.
Rob Bonta, California attorney general; Jennifer Euler, chief assistant attorney general; Hardy Gold, supervising deputy attorney general and Kristoffer Reich and Jessica Springer, deputies attorney general, Division of Medi-Cal Fraud and Elder Abuse, are representing the people.
Ralph Canales, pleaded not guilty, represented by Dan Chambers of Santa Ana’s Chambers Law Firm FWV22000555
Giovanni Ibale, plea and attorney not entered, FWV22000556
Rochell Paragados Canales, pleaded not guilty, represented by Mariya Melkonyan of Los Angeles’ Law Offices of Mariya Melkonyan, FWV22000558
Maureen Ibale, plea and attorney not entered, FWV22000559
Romeo Rodriguez, pleaded not guilty, represented by Gregory Kassel of Redlands’ Kassel and Kassel FWV22000560
Estrella Asejo, pleaded not guilty, represented by the conflict panel, FWV22000561
Lemuel Ursales, pleaded not guilty, represented by Aaron Hankoff of Los Angeles’ Kraut Law Group, FWV22000562.
Shemei Psotrero, pleaded not guilty, represented by the conflict panel, FWV22000567.
Juliet Nicolas-Meer, pleaded not guilty, represented by the conflict panel, FWV22000568.
Emerita Manicane, pleaded not guilty, represented by the conflict panel, FWV22000570.
Rose Lee, pleaded not guilty, represented by Victoria Freeman of San Bernardino’s Law Office of James McGee, FWV22000564.
Sherwin Canales, pleaded not guilty, represented by Mariya Melkonyan of Los Angeles’ Law Offices of Mariya Melkonyan, FWV22000563.
Myrna Cadavona, pleaded not guilty, represented by San Ramon’s John Doorlay, who is employed by the Chevron Corp. according to the State Bar’s database, FWV22000571.
Melita Cachapero, pleaded not guilty, represented by David Goldstein out of Rancho Cucamonga, a solo practice, FWV22000572.
Elberto Cabusao, pleaded not guilty, represented by Keyunda Hill of Rancho Cucamonga, FWV22000569.
Marieta Ancheta, pleaded not guilty, represented by Andrew Haynal of Redlands, FWV22000566.
Read the complaint here.
