SACRAMENTO (Azat TV) – California Governor Gavin Newsom filed a civil rights complaint against Dr. Mehmet Oz, Administrator for the Centers for Medicare & Medicaid Services (CMS), on Thursday, January 30, 2026. The action came in direct response to a video released by Oz on January 29, in which he linked Armenian-owned businesses in Los Angeles to widespread healthcare fraud, sparking a political and cultural firestorm and drawing strong condemnation from the Armenian American community.
In his complaint filed with the U.S. Department of Health and Human Services (HHS), Governor Newsom characterized Oz’s allegations as “baseless and racially charged,” arguing they crossed ethical and cultural lines. The video, which Oz filmed in Van Nuys, Los Angeles, specifically pointed to Armenian-language signage on storefronts as supposed visual evidence of organized crime involvement in an alleged $3.5 billion hospice and home-care fraud scheme.
Controversial Claims Target Armenian Businesses
Dr. Mehmet Oz, appointed by President Donald Trump to lead CMS, has made uncovering fraudulent billing a centerpiece of his agenda, traveling to various states to highlight the issue. However, his recent visit to Los Angeles took a controversial turn when he directly implicated the city’s large and politically active Armenian community in his fraud allegations. In the video, Oz referenced a four-block radius with 42 hospices and a $16 million scheme, explicitly blaming “Russian Armenian mafia” groups for much of the alleged fraud.
Oz’s office, in response to inquiries, stated that California’s Medicaid program, Medi-Cal, has patterns of fraud in areas like hospice and home health. He also claimed CMS identified $1.6 billion in federal funds spent on undocumented immigrants in California, which the agency is recouping. Acting U.S. Attorney in Los Angeles, Bill Essayli, who Oz said he was working with, supported the CMS Administrator’s claims, stating, “I think there’s probably more fraud in California than anywhere in the world,” without providing evidence to substantiate the assertion.
Governor Newsom Files Civil Rights Complaint
Governor Newsom moved swiftly to condemn the video, announcing his office’s civil rights complaint the day after Oz’s video was released. Newsom’s office argued that Oz’s portrayal of Armenian-owned businesses as central to a multibillion-dollar fraud ring not only causes harm but also risks discouraging communities from seeking essential home-care and hospice services. The governor noted that an Armenian bakery featured in Oz’s footage had already seen a significant plunge in customer traffic, demonstrating “real-world damage.”
Newsom also highlighted the “historic sensitivities” of framing fraud through cultural cues, particularly given the long-standing tensions between Turkey and Armenia over the early 20th-century Armenian Genocide. This criticism was further sharpened by Dr. Oz’s dual Turkish-American citizenship, a detail that resonated strongly within the Armenian American community.
This confrontation marks another chapter in the ongoing high-profile clashes between Governor Newsom, widely seen as a potential 2028 Democratic presidential contender, and the Trump administration. Previous disputes have included federal intervention regarding National Guard deployment in Los Angeles and efforts to block California’s 2035 ban on new gas-powered cars.
Armenian Community Leaders Condemn Oz’s Remarks
The Armenian American community responded forcefully to Dr. Oz’s video, calling his allegations dangerous and discriminatory. The Armenian National Committee of America (ANCA) condemned the rhetoric as “ethnic generalizations” that threaten civil rights protections. Community advocates emphasized that while criminal activity by post-Soviet Union organized-crime networks (sometimes referred to as “thieves-in-law syndicates”) has been linked to white-collar crimes including Medicare fraud, these activities are not connected to the broader Armenian community.
The use of Armenian-owned storefronts as visual evidence of organized crime was particularly criticized for perpetuating harmful stereotypes, especially in light of the fraught historical context between Armenia and Turkey.
Broader Context of California Healthcare Fraud
It is important to note that California has indeed faced well-documented challenges with healthcare fraud, particularly in the hospice industry. State Attorney General Rob Bonta has previously referred to hospice fraud as an “epidemic.” Investigations have uncovered operators billing for services not provided, enrolling ineligible patients, and receiving kickbacks for referrals. In response, Governor Newsom’s administration has taken steps, including pausing new hospice licenses in 2021 and revoking 280 existing ones in the past two years, with another 300 under review.
However, Governor Newsom’s spokesperson, Izzy Gardon, countered Oz’s criticism by stating, “When he was still hawking horse supplements on late night TV, the governor in 2021 banned all new hospices because of fraud, while the Trump administration has walked back measures to prevent fraud.” Gardon added that while fighting fraud is commendable, Oz’s attention was “directed the wrong way.” CMS spokesperson Christopher Krepich stated that effective fraud prevention requires earlier detection, stronger oversight, faster enforcement, and closer coordination with the federal government.
The controversy surrounding Dr. Oz’s video underscores the delicate balance between legitimate federal efforts to combat healthcare fraud and the imperative to avoid ethnic targeting or the perpetuation of harmful stereotypes. While the prevalence of fraud in specific healthcare sectors is a serious concern, the deliberate association of an entire ethnic community with criminal activity risks undermining trust, causing tangible economic harm, and exacerbating historical grievances, particularly when articulated by a high-ranking federal official.