In a bombshell on-the-ground investigation that’s igniting outrage across America, Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz has blown the lid off what he calls one of the largest organized fraud schemes targeting U.S. taxpayers in recent history.
Walking the streets of Van Nuys, Dr. Oz pointed to a staggering reality: 42 hospice facilities crammed into just a four-block radius – many sporting Cyrillic signage, boarded-up windows, and zero signs of actual patients or medical staff.
“These aren’t legitimate end-of-life care providers,” Oz declared in viral video footage now exploding across social media. “Fraudsters set up fake hospice addresses, bill Medicare for services never provided – to patients who often don’t exist or aren’t even terminal.” The numbers are jaw-dropping:
- One documented operation alone stole $16 million from Medicare – yet the ringleader served only two years in prison.
- Overall, Oz estimates $3.5 billion in hospice and home health care fraud occurring just in Los Angeles County.
- Investigators believe the scheme involves hundreds of recruited “bad doctors” who falsify terminal diagnoses, trick or pay patients to hand over their Medicare numbers, and enroll roughly 100,000 people into bogus programs.
Dr. Oz didn’t mince words about who’s behind much of it: “Russian-Armenian mafia” networks – organized crime groups he says systematically corrupt physicians, fabricate records, and siphon billions from American taxpayers.
“Why are taxes so high? Why are costs insane? FRAUD on a massive scale,” one viral repost read, echoing the fury spreading online. Clips of Oz standing in front of suspicious storefronts have racked up millions of views, with many calling it “the tip of the iceberg” dwarfing even recent scandals in Minnesota.
The Trump administration’s CMS crackdown – backed by DOJ probes – promises aggressive action. “President Trump won’t tolerate taxpayer dollars being stolen,” Oz emphasized. “This is organized crime preying on our seniors and our system.”
But not everyone is cheering. California officials, including Gov. Gavin Newsom’s office, have pushed back hard, calling the framing “unbelievable” and accusing the administration of taking credit for anti-fraud work already underway for years – while hinting the ethnic spotlight could veer into dangerous territory amid historic tensions.
Critics on forums like Reddit worry the “mafia” label unfairly paints entire Armenian communities, while supporters see it as long-overdue accountability for a broken system bleeding the country dry.
One thing is clear: this story is far from over. As federal agents dig deeper, the Van Nuys hospice scandal could trigger nationwide audits, arrests, and the biggest Medicare fraud takedown in years. Your tax dollars. Their billions. Who’s really paying the price?
@AzeriTimes
Van Nuys, Los Angeles – January 28, 2026
L.A. County has become an epicenter for health care fraud in America. Criminals have corrupted the system so much that fraud is now almost expected. President Trump has made it clear: we will not tolerate the patient harm or taxpayer funded theft any longer. More to come. pic.twitter.com/JOp8ltimq8
— DrOzCMS (@DrOzCMS) January 27, 2026
