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law that halted the issuance of new hospice licenses over fraud concerns and noted that over 280 hospice licenses have been revoked recently, with an additional approximately 300 hospices under review for potential infractions.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.