California Attorney General Rob Bonta announced that Ralph and Rochell Canales, operators of several Inland Empire hospice companies, have been sentenced for submitting false claims to Medicare and Medi-Cal. Ralph Canales received a sentence of seven years and four months in state prison from the San Bernardino County Court. Both Ralph and his wife Rochell were ordered to pay $1,455,233 in restitution. Rochell Canales was also sentenced to one year in jail and is prohibited from working with Medicare or Medi-Cal beneficiaries or for any healthcare provider funded by these programs.
The case was prosecuted by the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA). According to the department, between 2013 and 2022, the Canales couple, along with Sherwin Canales and business partners Giovanni and Maureen Ibale, operated Sterling Hospice, New Hope Hospice, River of Light Hospice, and Mt Olive Hospice. The group paid illegal kickbacks to marketers and two doctors who certified patients for hospice services even though they did not meet eligibility requirements.
Authorities identified at least 52 patients who were ineligible for hospice care but were still enrolled through fraudulent means. In addition to defrauding Medicare and Medi-Cal programs, Ralph and Rochell Canales failed to pay corporate taxes owed to state agencies.
Attorney General Bonta stated: “Medi-Cal and Medicaid exist to serve our most vulnerable communities. They are lifelines, not opportunities for exploitation. Let me be clear: Those who defraud these vital programs are not just breaking the law. They are stealing from taxpayers, endangering patient care, and betraying the public trust. At the California Department of Justice, we will not tolerate it. We will continue to aggressively pursue those who abuse these programs for personal gain, like the Canales, and hold them accountable to the fullest extent of the law.”
Since taking office, Attorney General Bonta has filed criminal charges against 109 individuals related to hospice fraud offenses and has conducted 24 civil investigations resulting in multiple civil filings.
The DMFEA is responsible for investigating cases involving abuse or fraud against elderly or dependent adults as well as fraud committed on the Medi-Cal program within California.
Funding for DMFEA comes primarily from a federal grant provided by the U.S. Department of Health and Human Services covering 75 percent of its budget for Federal Fiscal Year 2026; this amounts to over $77 million out of a total budget exceeding $103 million.
A copy of the sentencing minutes will be available here.
