Gov. Newsom, Dr. Oz Feud intensifies over Armenian ‘mafia’ hospice fraud claims in Los Angeles

LOS ANGELES – The Trump administration and California officials are locked in a heated public feud after Dr. Mehmet Oz alleged that a multibillion-dollar fraud ring, purportedly run by “Russian and Armenian gangs,” has turnedd Los Angeles into the epicenter of national health care corruption.

Governor Gavin Newsom has fired back, accusing the former TV doctor of racially profiling the Armenian American community and “cosplaying” as a fraud fighter.

What we know:

Dr. Oz, head of the Centers for Medicare and Medicaid Services (CMS), released a video Tuesday cruising through the Van Nuys neighborhood of Los Angeles. In the footage, he points to several buildings, claiming that “Russian-Armenian mafia” members are tricking or paying 100,000 patients to use their beneficiary numbers for fraudulent billing.

Oz alleges that Los Angeles County accounts for roughly 18% of the nation’s home health and hospice Medicare billing activity.

Gov. Newsom dismissed the claims as a political stunt, noting that California has already revoked more than 280 hospice licenses and implemented a state-wide moratorium on new licenses since 2022.

State officials highlighted that their own investigations have resulted in 109 criminal charges and 24 civil fraud cases since Attorney General Rob Bonta took office.

Dr. Oz pointed to specific addresses as evidence of “license flipping” and “shell companies,” where multiple businesses are registered to one location to bypass federal oversight. Many of the businesses he highlighted featured signs in Armenian, which led to Gov. Newsom’s accusations of ethnic profiling.

Local perspective:

The video showed Armenian-owned businesses like Kilikia Art Studio and Tigranakert Lavash.

Dr. Oz’ statements sparked backlash within the Armenian community, many saying he racially profiled and made discriminatory comments toward an entire community.

“Members of the Armenian-American community have condemned this conduct as ethnic profiling and dehumanizing rhetoric that unfairly stigmatizes a long-standing and law-abiding community in Southern California. Such public assertions by a senior federal official—especially those that focus on language and ethnicity rather than clearly documented criminal conduct—risk fostering discrimination, bias, and distrust toward Armenian Americans at a time when underserved communities already face societal challenges,” the Armenian Bar Association said.

Dig deeper:

Based on Medicare data for that specific neighborhood, there are dozens of hospice licenses registered to just a few multi-tenant office buildings within that radius.

The video footage and business directory data point to a cluster primarily centered along Van Nuys Boulevard and Victory Boulevard.

What we don’t know:

We do not yet know the names of the “42 hospices” Dr. Oz claims to have specifically uncovered in his latest sweep.

While the Friar Street building is well-documented, Dr. Oz’s video featured different locations, including a strip mall housing a bakery and art studio.

It is unclear if CMS has launched formal revocation proceedings against the specific agencies located at these new sites.

What they’re saying:

Gov. Newsom’s press office issued a scathing response on X stating, “Amazing to watch Dr. Oz cosplay as a fraud fighter for an effort the STATE launched years ago—back when he was busy pitching ‘miracle’ horse supplements to insomniacs on late-night TV.”

“Our office is reviewing reports that Dr. Mehmet Oz targeted the Armenian American community in Southern California recently—making racially charged claims of fraud… Given the historic sensitivities involved, we are taking these allegations seriously,” the governor’s office added.

Dr. Oz maintained his stance, stating in his video, “In this four block area in Los Angeles, there are 42 hospices. So, either there are a lot of people dying here, or you got a fraudulent activity that is so good everyone wants to get in on it.”

Timeline:

2021-2022: California emerges as a fraud “hotspot”; Gov. Newsom implements a licensing moratorium and a state task force.

January 9, 2026: Dr. Oz announces a federal crackdown on California health care fraud.

January 27, 2026: Dr. Oz releases the Van Nuys “street investigation” video.

January 28, 2026: Gov. Newsom’s office accuses Dr. Oz of profiling and demands a review of his actions.

February 3, 2026: House Republicans are scheduled to hold a hearing titled “Common Schemes, Real Harm” to examine Medicare fraud trends.

What’s next:

CMS and the Department of Health & Human Services (HHS) have sent a formal letter to Gov. Newsom demanding a “comprehensive action plan” within three weeks to address program integrity.

Meanwhile, House Republicans are ramping up federal oversight with a hearing scheduled for February 3 to investigate how transnational crime organizations are infiltrating the Medicare system.

What you can do:

The California Department of Justice and the Attorney General’s office have provided guidelines for families to identify potential hospice fraud. Red flags include:

• Being offered “free” services like groceries or housekeeping in exchange for your Medicare number.
• Enrolling a loved one in hospice who is not terminally ill (having 6 months or less to live).
• Discovering your Medicare statement shows charges for a hospice agency you never contacted.