Source: Office of United States Attorneys
LOS ANGELES – The owner and operator of two West Covina hospices was arrested today on a 14-count federal grand jury indictment alleging she filed more than $4.8 million in false and fraudulent claims to Medicare – which paid more than $3.8 million on those claims – for medically unnecessary services for people not terminally ill and for paying kickbacks to marketers to procure patients.
Normita Sierra, 71, a.k.a. “Normie,” of West Covina, is charged with nine counts of health care fraud, one count of conspiracy, and four counts of illegal remuneration for health care referrals.
Also arrested today was Rowena Elegado, 55, a.k.a. “Weng,” also of West Covina, who is charged with one count of conspiracy, and four counts of illegal remuneration for health care referrals.
Both defendants are expected to make their initial appearances and be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to the indictment, Sierra owned and operated Golden Meadows Hospice Inc., and D’Alexandria Hospice Inc., which billed Medicare for hospice services for patients who were not terminally ill during a scheme that lasted from September 2018 to October 2022.
Sierra and Elegado allegedly worked together to pay marketers to recruit patients to the hospices, knowing that most of those patients had not been referred by their primary care physicians for such services. Those kickbacks, often referred to internally using the code words “girl scout cookies,” amounted to as much as $1,300 per patient, per month that the patient stayed on hospice service.
Others involved in the scheme included Carl Bernardo, 53, of Chino, who pleaded guilty in September 2024 to one count of receiving kickbacks in connection with a federal health care program and is scheduled to be sentenced on October 23. Relyndo Salcedo, 60, of Fontana, a nurse practitioner involved in the scheme, pleaded guilty on May 22 to one count of health care fraud and is scheduled for sentencing on November 20.
Salcedo, a nurse practitioner, conducted initial assessments for the hospice and found many of the patients ineligible for hospice. But, under pressure from Sierra, who made the ultimate enrollment decisions even though she wasn’t a medical professional, and marketers such as Bernardo, Salcedo exaggerated and falsified the patients’ conditions to make them seem terminally ill. Hospice physicians then relied on Salcedo’s records to certify the patients as hospice appropriate.
Once enrolled, those patients – who were not in fact terminally ill – rarely died, and instead were often discharged at around six months at Sierra’s direction, sometimes to her home health company or the other hospice company.
During the scheme, Golden Meadows submitted at least approximately $3,870,642 in fraudulent claims, on which Medicare paid approximately $2,912,187. D’Alexandria submitted approximately $945,647 in fraudulent claims, on which Medicare paid approximately $894,199.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
If convicted of the charges, Sierra would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count. Sierra and Elegado would face up to five years in federal prison for the conspiracy count and up to 10 years in federal prison for each illegal kickback count.
The United States Department of Health and Human Services Office of the Inspector General and the FBI investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.