Attorney General Bonta Charges Operators of Peppermint Palm Placement Services for Financial Elder Abuse

SACRAMENTO – California Attorney General Rob Bonta today announced the filing of felony charges against two operators of Peppermint Palm Placement Services (PPPS) for embezzling more than $350,000 from elderly victims through their placement agencies. The defendants operated over a dozen placement agencies, including PPPS, Peppermint Palm Senior Care, Porus Placements, Persimmon Placements, Red Cardinal Management Corporation, and others. They are being charged with 28 felonies, including theft from an elder, identity theft, grand theft by embezzlement, filing a false or forged document with a public office, money laundering, conspiracy, and a white-collar crime enhancement. 

“When caregivers put illegal profit over the health and safety of those in their care, everyone loses,” said Attorney General Bonta. “At the California Department of Justice, we are dedicated to combating all forms of elder abuse and neglect. We will act swiftly to hold accountable anyone who harms or takes advantage of these at-risk members of our community.”

The California Department of Justice received a report alleging that the operators of PPPS secured contracts with individuals seeking assistance for residential placements, charging them a placement fee equivalent to 150% of the client's rent. Clients’ families or payees would send rent payments to PPPS with the understanding that PPPS would then forward the payment to the home operator or landlord. It is alleged that PPPS would obtain their "placement fee" and would then stop paying the rent and abruptly relocate the client to a different residence, restarting the cycle. Many of these clients struggle with mental health or substance abuse issues, and the majority are beneficiaries of Medi-Cal.  

It is important to note that criminal charges must be proven in a court of law. Every defendant is presumed innocent until proven guilty.

The California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA) works to protect Californians by investigating and prosecuting those responsible for abuse, neglect, and fraud committed against elderly and dependent adults in the state, and those who perpetrate fraud on the Medi-Cal program.
 
DMFEA receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $69,244,976 for Federal fiscal year (FY) 2025. The remaining 25 percent is funded by the State of California. FY 2025 is from October 1, 2024, through September 30, 2025.
 
A copy of the complaint can be found here.