Government Seizes $2M+ from California Wound Care Clinic Over Alleged Medicare Skin Graft Fraud
By the Constantine Cannon Whistleblower Team
On April 28, a federal court granted the government’s request to seize over $2 million from a California clinic, Expert Wound Care, which allegedly defrauded Medicare by billing for skin grafts and skin graft substitutes that patients never received.
United States Magistrate Judge Alicia G. Rosenberg authorized the seizure of roughly $2,039,792 from a bank account connected to the clinic.[1]
What Was the Alleged Medicare Fraud Scheme?
From September 2025 to April 2026, Expert Wound Care purportedly submitted over $46.6 million in Medicare claims for products and services allegedly provided to 78 beneficiaries.
Medicare paid around $34 million on those claims, including reimbursements for skin substitutes, skin grafts, and other skin application procedures.[2]
National Averages For Billing Providers’ Amounts Per Claim For Grafts
From January 2025 through June 2025, the national average amount per claim for skin substitute grafts was $16,837. By comparison, Expert Wound Care averaged approximately $37,449 per claim for skin substitute grafts from July 2025 through March 2026.[3] In addition, the percentage of the clinic’s beneficiaries receiving substitute skin grafts was 38.5 percent, more than six times the national average of six percent.
What Were the Alleged Increases in Medicare Billing?
According to the affidavit filed in support of the seizure warrant, the clinic increased its Medicare billing from $4,975 in July 2025 to approximately $33 million by December 2025. The affidavit states that one beneficiary accounted for approximately $6.2 million in Medicare payments, while the average amount paid to the clinic per beneficiary was nearly $300,000.
The affidavit focused on claims tied to a beneficiary for whom Expert Wound Care allegedly billed Medicare roughly $2.6 million for skin substitute grafts and 52 skin graft application services. Law enforcement later determined that the beneficiary never received any skin grafts as part of their treatment and did not receive home services in December 2025, even though Expert Wound Care submitted 27 claims that month.
The investigation is ongoing.
How Can Whistleblowers Help Fight Medicare Fraud?
According to Constantine Cannon attorney Marlene Koury, “Whistleblowers often provide the government with an inside view of fraud schemes that steal from vulnerable populations who depend on federal programs. The government’s continued commitment to going after healthcare fraud protects public trust in the system.”
There are many types of healthcare fraud. Individuals who identify fraud can blow the whistle on misconduct such as accepting kickback payments for services or patient referrals, submitting false claims, billing for medically unnecessary services, upcoding, making false statements about covered services, and more.
While it is unknown whether whistleblowers played a role in this case, they play an important role in shedding light on healthcare fraud. Under the qui tam (or whistleblower) provisions of the False Claims Act, private parties can file lawsuits on behalf of the United States against those who defraud the government. Eligible whistleblowers may receive sizeable rewards of up to 30% of any funds recovered by the government.
Constantine Cannon Has Extensive Experience Representing Whistleblowers
Our firm has significant experience representing healthcare fraud whistleblowers. If you think you have a case, please contact us, and we will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.
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[1] See https://www.justice.gov/usao-cdca/pr/united-states-seizes-more-2-million-pasadena-based-advanced-wound-care-clinic-0.
[2] Id.
[3] Id.
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