Attorney General Bonta Secures Felony Sentencing of Inland Empire Hospice Operators for Medicare and Medi-Cal Fraud

INLAND EMPIRE – California Attorney General Rob Bonta today announced the sentencing of Inland Empire Hospice operators, Ralph and Rochell Canales, for submitting false claims to the Medicare and Medi-Cal programs. Ralph was sentenced by the San Bernardino County Court to seven years and four months in state prison and was jointly ordered to pay $1,455,233, alongside his wife Rochell Canales. Rochelle was sentenced to one year in jail, and ordered to abstain from working with Medicare and Medi-Cal beneficiaries in a caregiver or fiduciary capacity and from working for any healthcare provider that receives funds from Medicare or Medi-Cal. The prosecution of these individuals was carried out by the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse.

“Medi-Cal and Medicaid exist to serve our most vulnerable communities. They are lifelines, not opportunities for exploitation,” said Attorney General Bonta. “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.”

From 2013 through 2022, Ralph Canales and his wife Rochell Canales, along with brother Sherwin Canales and business partners Giovanni and wife Maureen Ibale, operated Sterling Hospice, New Hope Hospice, River of Light Hospice, and Mt Olive Hospice in the Inland Empire. Ralph Canales played a primary role as owner and operator of these companies while his wife played a supporting role at the direction of her husband. While running these companies, these individuals paid illegal kickbacks, in the form of cash and personal checks, to illicit marketers and two Inland Empire-area doctors, who certified patients for hospice services though the patients were not suffering from conditions likely to be terminal.

Between the four companies, at least 52 patients were identified as being ineligible to receive hospice care substantially defrauding the Medicare and Medi-Cal programs. In addition to committing fraud against the Medicare and Medi-Cal programs, Ralph and Rochell failed to pay corporate taxes to the Franchise Tax Board and California Employment Development Department.

Since taking office, Attorney General Bonta has filed criminal charges against 109 individuals with hospice fraud-related offenses and conducted 24 civil investigations, which resulted in multiple civil filings. Please click here to learn more. Building on his efforts to combat hospice fraud, this August, the Attorney General launched a new initiative aimed at educating the public and providing vital reporting resources to individuals and families who may have been impacted by hospice fraud. To learn more, click here.

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.

The Division of Medi-Cal Fraud and Elder Abuse receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $77,652,892 for Federal Fiscal Year (FFY) 2026.  The remaining 25 percent, totaling $25,884,297 for FFY 2026, is funded by the California Attorney General’s Office.  FFY 2026 is from October 1, 2025 through September 30, 2026.  

A copy of the sentencing minutes will be available here.