California officials said they uncovered a multimillion-dollar fraud scheme involving stolen identities used to bill government-funded hospice care.

Prosecutors charged 21 people and arrested 5, alleging they used personal data from nonresidents purchased on the dark web to enroll victims in Medi-Cal.

Authorities said the group then bought hospice companies and submitted about $267 million in fraudulent claims.

State officials described the case as a major effort to protect taxpayer-funded health programs and vulnerable patients, ABC News has reported.

The investigation comes amid increased federal scrutiny of Medicare and Medicaid fraud in California and other states.