Newsom Files Civil Rights Complaint After Dr. Oz’s Fraud Allegation Against L.A. Armenians
California Governor Gavin Newsom has taken a significant step by filing a civil rights complaint against Dr. Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services. This action follows remarks made by Oz suggesting that Armenian crime groups have engaged in substantial healthcare fraud in Los Angeles.
Allegations of Fraud in Los Angeles
In a video released on social media, Dr. Oz alleged that approximately $3.5 billion in Medicare fraud has been orchestrated by hospice and home care services linked to the “Russian Armenian mafia.” The comments were made while Oz was filmed in Van Nuys, California, where he pointed out that the area featured Armenian businesses.
Response from Governor Newsom
In his complaint submitted to the Department of Health and Human Services, Newsom criticized Oz’s statements as “baseless and racist” and urged an investigation into the allegations. Newsom’s office emphasized the potential chilling effect such claims could have on the participation of the Armenian American community in essential federal healthcare programs.
- Governor Newsom’s complaint is aimed at fostering accountability.
- He described Oz’s comments as racially charged and damaging.
- Newsom expressed serious concern regarding the targeting of Armenian Americans.
Impact on Local Business
Movses Bislamyan, the owner of an Armenian bakery featured in the video, reported a dramatic 30% drop in business following the video’s release. He conveyed his disappointment, asserting that his establishment is unrelated to any fraudulent activity mentioned by Oz.
Context of the Allegations
This controversy unfolds as the Trump administration intensifies efforts to combat alleged fraud in healthcare programs across Democratic-led states, including California. Newsom’s office responded quickly, acknowledging the sensitive nature of the accusations against the Armenian American community.
Dr. Oz’s Counterstatement
Dr. Oz defended his statements by claiming that if there were valid arguments against the fraud allegations, they would be evident. He reaffirmed the commitment of CMS and law enforcement to address fraud in the healthcare system.
Ongoing Investigations in California
California’s scrutiny of healthcare fraud has been ongoing since a 2020 investigation by the Los Angeles Times, uncovering extensive fraudulent activities within the hospice sector. Data reveals that the number of hospices in the county has expanded sixfold from 2010 to 2020, now representing over half of California’s Medicare-certified providers. The San Fernando Valley has emerged as a central hub for hospices nationwide.
Fraud Cases in the Hospice Industry
In the last two years, California’s Department of Justice has charged 109 individuals with fraud related to hospice services. Additionally, 24 civil suits have been filed regarding hospice fraud. Furthermore, 280 hospices have had their licenses revoked during this period, highlighting the increasing need for oversight in the industry.
