Los Angeles, January 30, 2026
Governor Gavin Newsom has filed a civil rights complaint against Dr. Mehmet Oz after he claimed that $3.5 billion in healthcare fraud is linked to Armenian American businesses in Los Angeles. This has led to backlash from the Armenian community and local businesses facing economic downturns. Newsom’s complaint urges an investigation into the claims, emphasizing the potential for discrimination against Armenian Americans and the need for responsible public commentary.
Los Angeles, California
Governor Gavin Newsom has filed a civil rights complaint against Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services (CMS), following Oz’s allegations of widespread healthcare fraud involving Armenian American businesses in Los Angeles.
Allegations and Response
Dr. Oz recently made headlines with his claim that approximately $3.5 billion in healthcare fraud is occurring in Los Angeles, particularly in hospice and home care services. He pointed to businesses featuring Armenian-language signage as part of his assertions that a significant portion of this alleged fraud is orchestrated by the so-called “Russian Armenian Mafia.” These comments have sparked considerable outrage from both the Armenian American community and various state officials, who argue that such statements are racially charged and unsupported by evidence.
Governor Newsom’s Civil Rights Complaint
In light of these allegations, Governor Newsom has taken a stand by filing a civil rights complaint aimed at urging the Department of Health and Human Services to investigate Dr. Oz’s claims. The crux of the complaint highlights concerns that such statements could discourage participation in vital healthcare programs and potentially foster discrimination against Armenian Americans in California. The Governor’s proactive approach underscores the importance of fostering an inclusive environment for all communities, particularly in the sensitive realm of healthcare.
Impact on Local Businesses
The fallout from Oz’s video has not been limited to public discourse; it has had tangible consequences for local businesses in the Van Nuys area, where Oz filmed his claims. Business owners have reported significant declines in sales, with one local bakery noting a 30% drop. Community leaders have expressed alarm at how these allegations could tarnish the reputations and financial stability of legitimate businesses operating in the area. This incident serves as a reminder of the importance of responsible public commentary, especially when it can impact the livelihoods of community entrepreneurs.
Background on Healthcare Fraud Investigations
California has been proactive in tackling healthcare fraud, particularly within the hospice sector. Since 2020, the state has already revoked over 280 hospice licenses and has enacted a moratorium on new licenses since 2022. The California Department of Justice has taken further measures, charging 109 individuals with hospice-related offenses and filing 24 civil suits pertaining to hospice fraud since 2021. These actions demonstrate the state’s commitment to safeguarding patients and taxpayers alike by rooting out fraudulent activities within the healthcare system.
Dr. Oz’s Position
Defending his statements, Dr. Oz has asserted that his comments were intended solely to address fraud within the healthcare system and were not meant to target any specific ethnic group. He emphasized the necessity of combatting fraudulent practices to protect citizens reliant on these services and to ensure taxpayer dollars are appropriately utilized. Dr. Oz believes that by shining a light on these issues, he is fulfilling a critical role in advocating for integrity in healthcare services.
Ongoing Developments
The situation remains fluid as discussions unfold among state officials, the Armenian American community, and federal authorities. With further investigations on the horizon, all parties involved hope for clarity regarding the extent of healthcare fraud in Los Angeles. It is crucial for the health and economic vitality of the area that these allegations are addressed thoroughly and equitably, fostering a business environment that supports ethical practices and community growth.
Frequently Asked Questions (FAQ)
What are the allegations made by Dr. Oz?
Dr. Oz alleged that approximately $3.5 billion in healthcare fraud is occurring in Los Angeles, particularly within hospice and home care services, and suggested that a significant portion of this fraud is orchestrated by the “Russian Armenian Mafia.”
How has Governor Newsom responded to these allegations?
Governor Newsom filed a civil rights complaint against Dr. Oz, urging the Department of Health and Human Services to investigate Oz’s allegations, emphasizing that such statements could deter individuals from participating in essential healthcare programs and may perpetuate discrimination against Armenian Americans in California.
What impact have these allegations had on local businesses?
Business owners in the Van Nuys area, where Oz filmed his video, have reported negative consequences following the release of the footage, including a 30% drop in sales for a local bakery, attributing the decline to the backlash from Oz’s claims.
What actions has California taken to address healthcare fraud?
California has revoked over 280 hospice licenses and implemented a moratorium on new licenses since 2022. Additionally, the California Department of Justice has charged 109 individuals with hospice-related offenses and filed 24 civil suits related to hospice fraud since 2021.
What is Dr. Oz’s stance on these allegations?
Dr. Oz has defended his statements, asserting that his focus is on combating fraud and that his remarks were not intended to target any specific ethnic group, emphasizing the importance of addressing fraudulent activities to protect both patients and taxpayers.
Key Features of the Situation
| Feature | Details |
|---|---|
| Allegations | Dr. Oz claims $3.5 billion in healthcare fraud in Los Angeles, linked to the “Russian Armenian Mafia.” |
| Governor’s Response | Governor Newsom files a civil rights complaint urging investigation into Oz’s allegations. |
| Impact on Businesses | Local businesses, including a bakery, report a 30% drop in sales following Oz’s video release. |
| California’s Actions | State revokes over 280 hospice licenses, implements moratorium on new licenses, and charges 109 individuals with hospice-related offenses since 2021. |
| Dr. Oz’s Position | Defends statements, focusing on combating fraud without targeting any specific ethnic group. |
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Author: STAFF HERE LOS ANGELES WRITER
The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
