California Governor Challenges Dr. Oz Over Alleged Discriminatory Claims in Hospice Fraud Video
January 30, 2026
News & Politics

California Governor Challenges Dr. Oz Over Alleged Discriminatory Claims in Hospice Fraud Video

Newsom files a civil rights complaint against CMS administrator Dr. Oz following his controversial accusations involving the Armenian community in Los Angeles

Summary

California Governor Gavin Newsom has formally requested a civil rights investigation into Dr. Mehmet Oz after the latter’s social media video implicated Armenian businesses in alleged hospice fraud operations in Los Angeles. This complaint emerges amidst escalating tensions between California officials and the Trump administration. The dispute centers on claims of a $3.5 billion fraud scheme linked to the 'Russian Armenian mafia,' remarks that Newsom’s office views as racially charged and damaging to the community.

Key Points

Governor Newsom has filed a civil rights complaint against Dr. Mehmet Oz over his social media statements accusing Armenians of involvement in extensive hospice fraud in Los Angeles.
Dr. Oz, as CMS administrator, highlighted a $3.5 billion hospice and home care fraud issue, attributing a portion to what he termed the 'Russian Armenian mafia,' which has sparked backlash for racial insensitivity and caused real economic harm to Armenian businesses featured in his video.
California officials maintain that they have been actively combating hospice fraud with legislative action and license revocations, while community leaders criticize Oz’s remarks as harmful stereotypes and fear-mongering impacting the Armenian-American community.

California Governor Gavin Newsom has initiated a civil rights complaint against Dr. Mehmet Oz, the federal administrator responsible for the Centers for Medicare and Medicaid Services (CMS). This action follows Oz's social media video released in Los Angeles, where he alleged widespread hospice and home care fraud involving approximately $3.5 billion, attributing a notable portion of this activity to what he termed the "Russian Armenian mafia."

In the video, Oz positioned himself outside an Armenian bakery located in Los Angeles, emphasizing the presence of numerous hospice providers within a concentrated neighborhood, implying fraudulent conduct under Armenian operators. Oz’s position as CMS administrator grants him authority over certification of hospice providers that serve patients through federally subsidized insurance programs.

Newsom's office responded swiftly, filing the complaint on Thursday, characterizing Oz's statements as "baseless and racially charged allegations" that could deter participation in hospice and home care services within the targeted communities. Furthermore, the office alleged that these assertions have already inflicted tangible damage, referencing a decline in business experienced by the Armenian bakery featured in Oz’s video.

Movses Bislamyan, whose family owns the bakery depicted, voiced his concern to KABC-TV, rebutting the notion of any illegal "Armenian mafia" presence and emphasizing the community’s identity as diligent entrepreneurs.

Dr. Oz countered by accusing Governor Newsom of attempting to divert attention from the critical issue of Medicare fraud. He noted that although Medicare is a federal program, the magnitude of fraud he highlighted is particularly severe in California, though he did not disclose specific evidence or detailed information substantiating the alleged fraud.

This episode aligns with the Trump administration’s broader initiative to expose and address fraud nationwide. Previous cases, such as those concerning day care centers operated by Somali residents in Minneapolis, have sparked immigration enforcement actions and widespread public unrest.

Governor Newsom acknowledged the existence of hospice fraud within California while asserting that his administration has been actively combatting the problem for several years. He cited a 2021 law that halted the issuance of new hospice licenses over fraud concerns and noted that over 280 hospice licenses have been revoked recently, with an additional approximately 300 hospices under review for potential infractions. The state has not released a comprehensive list of affected businesses.

Newsom stated, "We’ve identified and cracked down on hospice fraud for years, taking real action to protect patients and taxpayers."

In Oz's video, the reference to Van Nuys, a neighborhood in Los Angeles, suggested that within a four-block radius exist 42 hospice facilities, insinuating concentrated fraudulent activity. He mentioned a specific business involved in a $16 million scheme and drew attention to the Armenian signage present, pointing it out as relevant to his claims. Oz, whose parents emigrated from Turkey, remarked on the lack of sufficient scrutiny towards these problems within California.

Aram Hamparian, executive director of the Armenian National Committee of America, criticized Oz’s rhetoric as invoking damaging stereotypes about the Armenian community, which has a significant presence in California, particularly in Los Angeles County where over 200,000 residents are of Armenian descent. He also expressed concern about Oz’s Turkish heritage, alluding to historical and political sensitivities tied to Armenia and Turkey.

Hamparian emphasized that prosecutions related to hospice fraud have occurred at the state level and took issue with Oz’s approach, describing it as fear-mongering and scapegoating that unfairly indicts the entire Armenian population collectively.

Relations between Turkey and Armenia have been tense due to longstanding grievances, lack of formal diplomatic ties, and Turkey’s alliance with Azerbaijan. Though some recent initiatives aim to ease travel restrictions, significant political and historical issues remain unresolved.

This dispute represents one of several ongoing conflicts between Governor Newsom—considered a possible Democratic contender for the 2028 presidential election—and the Trump administration. Their confrontations encompass various topics, including federal National Guard deployments in Los Angeles and opposition to California's notable environmental policies, such as its planned 2035 ban on new gas-powered vehicles.

Risks
  • The allegations and public dispute could undermine trust and participation in hospice and home care programs, potentially affecting healthcare delivery and funding for vulnerable populations.
  • The racialization of fraud accusations risks damaging business operations and community relations, particularly for Armenian-owned enterprises in Los Angeles, with potential negative economic consequences.
  • Ongoing tensions between state and federal authorities, especially regarding healthcare oversight and enforcement, may lead to regulatory uncertainty or conflicts impacting healthcare providers and insurers.
Disclosure
This article presents factual reporting based on official statements, social media posts, and community responses related to the hospice fraud allegations and subsequent civil rights complaint. No speculative or unverified information has been included.
Search Articles
Category
News & Politics

News & Politics

Related Articles
Tejon Ranch: Deep-Value Land Option Under the Surface

Tejon Ranch (TRC) is a diversified landowner turning non-current land assets into mixed-use real est...

FDA Initiates Review of BHA Food Additive Safety

The U.S. Food and Drug Administration (FDA) has announced plans to conduct a comprehensive reassessm...

Partisan Divide Deepens as White House Excludes Democratic Governors from NGA Meeting

The longstanding bipartisan forum of the National Governors Association (NGA) is facing disruption a...

Using Fireplace Ashes in Your Garden: Benefits and Considerations

Amidst a notably cold winter leading to increased fireplace use, many homeowners are seeking sustain...