Bogus businesses and ‘lax’ oversight: How hospice fraud has flourished in California
This deserves loud pushback.
In Focus delivers deeper coverage of the political, cultural, and ideological issues shaping America. Published daily by senior writers and experts, these in-depth pieces go beyond the headlines to give readers the full picture. You can find our full list of In Focus pieces here.
California has emerged as an epicenter of healthcare fraud, specifically multimillion-dollar hospice scams operating out of Los Angeles, a scandal of such magnitude allegedly on par with the Somali-run schemes that bilked public assistance programs in Minnesota by the billions.
Dr. Mehmet Oz, chief of the U.S. Centers for Medicare & Medicaid Services, recently accused foreign gangsters from Russia and Armenia of setting up bogus hospice businesses in California, cutting in corrupt doctors, and treating tricked or compromised patients as part of an “organized crime mafia deal.”
Oz posted a video on Jan. 26 suggesting that Russian-Armenian gangs may be behind the hospice fraud that has cropped up primarily in Los Angeles.
“A lot of it’s driven by foreigners who came to Los Angeles — very different culture, Russian-Armenian groups — and this mafia seems to have taken over the system,” Oz said in the footage.
In response, Gov. Gavin Newsom (D-CA) filed a civil rights complaint claiming that Oz made “baseless and racist allegations” against Armenian Americans in California, reflecting “discriminatory animus” directed toward them.
NEWSOM HITS DR. OZ WITH CIVIL RIGHTS COMPLAINT OVER ARMENIAN HOSPICE FRAUD ALLEGATIONS
As proof of foreign influence, Oz referred to a California criminal case involving a yearslong Medicare money-laundering scheme that stole $16 million in hospice proceeds.
Fraudsters convicted in June 2025 for their involvement were identified by federal authorities as belonging to a ring of “foreign nationals” operating multiple fake hospice companies and submitting false claims for services that were either never provided or medically unnecessary.
According to a Center Square analysis of California Social Services data, Armenians in Los Angeles County appeared to use the state’s in-home care program at roughly 700% of their population share, equaling 14.7% of recipients versus 2.1% of the population.
California fraught with hospice fraud for years
“We have witnessed a sevenfold increase in hospice in L.A. County. Sevenfold. That doesn’t happen naturally,” Oz said, adding, “There are not seven times more deaths in L.A. County than there were five years ago.” …
This deserves loud pushback.
In Focus delivers deeper coverage of the political, cultural, and ideological issues shaping America. Published daily by senior writers and experts, these in-depth pieces go beyond the headlines to give readers the full picture. You can find our full list of In Focus pieces here.
California has emerged as an epicenter of healthcare fraud, specifically multimillion-dollar hospice scams operating out of Los Angeles, a scandal of such magnitude allegedly on par with the Somali-run schemes that bilked public assistance programs in Minnesota by the billions.
Dr. Mehmet Oz, chief of the U.S. Centers for Medicare & Medicaid Services, recently accused foreign gangsters from Russia and Armenia of setting up bogus hospice businesses in California, cutting in corrupt doctors, and treating tricked or compromised patients as part of an “organized crime mafia deal.”
Oz posted a video on Jan. 26 suggesting that Russian-Armenian gangs may be behind the hospice fraud that has cropped up primarily in Los Angeles.
“A lot of it’s driven by foreigners who came to Los Angeles — very different culture, Russian-Armenian groups — and this mafia seems to have taken over the system,” Oz said in the footage.
In response, Gov. Gavin Newsom (D-CA) filed a civil rights complaint claiming that Oz made “baseless and racist allegations” against Armenian Americans in California, reflecting “discriminatory animus” directed toward them.
NEWSOM HITS DR. OZ WITH CIVIL RIGHTS COMPLAINT OVER ARMENIAN HOSPICE FRAUD ALLEGATIONS
As proof of foreign influence, Oz referred to a California criminal case involving a yearslong Medicare money-laundering scheme that stole $16 million in hospice proceeds.
Fraudsters convicted in June 2025 for their involvement were identified by federal authorities as belonging to a ring of “foreign nationals” operating multiple fake hospice companies and submitting false claims for services that were either never provided or medically unnecessary.
According to a Center Square analysis of California Social Services data, Armenians in Los Angeles County appeared to use the state’s in-home care program at roughly 700% of their population share, equaling 14.7% of recipients versus 2.1% of the population.
California fraught with hospice fraud for years
“We have witnessed a sevenfold increase in hospice in L.A. County. Sevenfold. That doesn’t happen naturally,” Oz said, adding, “There are not seven times more deaths in L.A. County than there were five years ago.” …
Bogus businesses and ‘lax’ oversight: How hospice fraud has flourished in California
This deserves loud pushback.
In Focus delivers deeper coverage of the political, cultural, and ideological issues shaping America. Published daily by senior writers and experts, these in-depth pieces go beyond the headlines to give readers the full picture. You can find our full list of In Focus pieces here.
California has emerged as an epicenter of healthcare fraud, specifically multimillion-dollar hospice scams operating out of Los Angeles, a scandal of such magnitude allegedly on par with the Somali-run schemes that bilked public assistance programs in Minnesota by the billions.
Dr. Mehmet Oz, chief of the U.S. Centers for Medicare & Medicaid Services, recently accused foreign gangsters from Russia and Armenia of setting up bogus hospice businesses in California, cutting in corrupt doctors, and treating tricked or compromised patients as part of an “organized crime mafia deal.”
Oz posted a video on Jan. 26 suggesting that Russian-Armenian gangs may be behind the hospice fraud that has cropped up primarily in Los Angeles.
“A lot of it’s driven by foreigners who came to Los Angeles — very different culture, Russian-Armenian groups — and this mafia seems to have taken over the system,” Oz said in the footage.
In response, Gov. Gavin Newsom (D-CA) filed a civil rights complaint claiming that Oz made “baseless and racist allegations” against Armenian Americans in California, reflecting “discriminatory animus” directed toward them.
NEWSOM HITS DR. OZ WITH CIVIL RIGHTS COMPLAINT OVER ARMENIAN HOSPICE FRAUD ALLEGATIONS
As proof of foreign influence, Oz referred to a California criminal case involving a yearslong Medicare money-laundering scheme that stole $16 million in hospice proceeds.
Fraudsters convicted in June 2025 for their involvement were identified by federal authorities as belonging to a ring of “foreign nationals” operating multiple fake hospice companies and submitting false claims for services that were either never provided or medically unnecessary.
According to a Center Square analysis of California Social Services data, Armenians in Los Angeles County appeared to use the state’s in-home care program at roughly 700% of their population share, equaling 14.7% of recipients versus 2.1% of the population.
California fraught with hospice fraud for years
“We have witnessed a sevenfold increase in hospice in L.A. County. Sevenfold. That doesn’t happen naturally,” Oz said, adding, “There are not seven times more deaths in L.A. County than there were five years ago.” …
