The Trump administration is “aggressively” targeting the Russian and Armenian mob as part of a crackdown on medical fraud in California, Medicaid czar Dr. Mehmet Oz said Monday, warning of a major campaign against what he described as a sprawling criminal scheme.
Oz — the Administrator of the Centers for Medicare & Medicaid Services — accused organized crime of hijacking hospice and medical billing systems, allegedly by corrupting doctors and normalizing fraud on an industrial scale.
“This mafia seems to have taken over the system. They corrupted doctors, they’ve normalized fraud so that everyone sort of expects it, but the magnitude of it is so great that we have to take it out aggressively,” Oz said in a video shared to social media.
“It’s a focus area for CMS and this administration and President Trump is not going to tolerate taxpayer dollars being stolen because people aren’t paying attention anymore.”
Oz’s warning builds on claims he made earlier this month that hospice care in Los Angeles has increased “sevenfold” over the past five years — a surge he said sparked an investigation.
“That doesn’t happen naturally,” he said at the time.
Oz pointed the finger at foreign gangsters — likely from Russia or Armenia — who he said are corrupting doctors and defrauding the medical system by enrolling ineligible patients into hospice care and billing for services not rendered.
He alleged the scam has pulled in staggering numbers: at least 100,000 Medicare numbers handed over after being convinced by “100 bad doctors” that they were dying.
And in Los Angeles County — which Oz labeled the “epicenter” — he said organized crime allegedly milked more than $3.5 billion.
Watch the clip below:
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
More over at The New York Post:
Dr. Oz promises to ‘aggressively’ go after ‘mafia’ stealing billions through Cali hospice fraud https://t.co/JK0oRPm1J5 pic.twitter.com/wouwN1JvDI
— New York Post (@nypost) January 27, 2026