Hospice fraud explodes in Los Angeles and more

Cambodia targets scam syndicates with historic new law

Cambodia has developed its first-ever legal framework aimed specifically at dismantling online scam centers, which have become a major source of fraud and forced labor in Southeast Asia. The legislation is designed to regulate, restrict and ultimately eliminate the scam networks operating within the country. The Cambodian Cabinet approved the legislation, which awaits approval from Cambodia’s Parliament.

The legislation imposes prison terms of five to 10 years, along with fines ranging from 500 million riels to 1 billion riels (approximately $125,000–$250,000), for anyone who organizes or oversees a technology‑based fraud operation. When offenses involve human trafficking, violence or the detention of victims, penalties increase to 10 to 20 years in prison and fines of up to 2 billion riels (about $500,000). If a death occurs in connection with a scam center, the crime is punishable by 15 to 30 years in prison or up to a life sentence. Authorities note that some workers have died while attempting to escape these operations.

U.S. halts new Medicare suppliers as billing scheme unravels

U.S. authorities have frozen new Medicare supplier enrollments for six months after investigators uncovered an alleged Russian‑linked medical billing scheme operating out of a small office in Austin, Texas. Officials say the nationwide freeze is an urgent step toward preventing high‑risk companies from entering Medicare while oversight tightens. Medicare is a U.S. government health insurance program that helps cover medical costs for people who are 65 and older, as well as certain younger individuals with disabilities.

The office belonged to Centurion Superior Medical LLC, a company tied to Russian citizen Nika Machutadze, who’s accused of submitting tens of thousands of fraudulent Medicare claims for medical equipment that patients never ordered or received. He’s charged with conspiracy to commit money laundering tied to the alleged fraud. Records show Centurion filed roughly 79,000 claims totaling about $134 million in a month, much of it for urinary catheters.

Although Medicare halted reimbursements, supplemental insurers continued paying, allowing nearly $988,000 to be wired to Hong Kong. A federal complaint also links Machutadze to a second company in Florida that submitted more than 1.6 million claims totaling $3.33 billion.

More than 700 Los Angeles hospices flagged for fraud

A CBS News investigation reveals that Los Angeles County has become a major hub for hospice‑related fraud, with evidence showing the problem has grown despite previous efforts by California officials to control it. Reporters found that many residents were unknowingly enrolled in end‑of‑life care, blocking them from legitimate medical benefits.

A prior state audit had warned of a dramatic surge in hospice companies, identifying red flags such as clusters of hospices operating out of the same buildings, high numbers of patients who were supposedly terminal but later discharged, and excessive or suspicious billing patterns. A CBS News analysis showed that more than 700 of about 1,800 active hospices still exhibit multiple fraud red flags, indicating that fraudulent operators continue to thrive.

NCAA point‑shaving mastermind pleads guilty in betting scheme

Federal prosecutors announced that Jalen Smith, one of the key “fixers” in a sweeping U.S. college basketball point‑shaving scheme, has pleaded guilty to wire fraud and bribery charges tied to efforts to manipulate NCAA games for illicit betting profits. The NCAA is a U.S. organization that governs college sports, setting the rules and standards for athletic programs at many universities and colleges.

Smith, a basketball trainer from Charlotte, North Carolina, used his professional relationships with players to recruit athletes willing to underperform in exchange for cash. According to investigators, Smith played a central role in organizing payouts, coordinating bets and traveling to meet players in person, at times delivering tens of thousands of dollars in cash as part of the operation. Smith’s plea marks the first conviction in the case, which is part of a broader federal indictment that named 26 former and current college basketball players.

Authorities say more than a dozen players attempted to fix games as recently as the 2023–24 and 2024–25 seasons, with some also helping recruit teammates. The group allegedly placed large wagers against teams whose players had agreed to underperform, resulting in significant fraud against sports books and those betting on games. The scheme reportedly originated with attempts to manipulate games abroad, such as those in the Chinese Basketball Association, before expanding to NCAA Division I men’s basketball.

Crystal Zuzek is associate editor of Fraud Magazine. Contact her at czuzek@acfe.com.