The Minnesota fraud scandal rocked the nation. But it’s just the beginning.
Now, the Trump administration is uncovering massive fraud schemes across other states, including California.
President Trump’s Centers for Medicare & Medicaid Services Administrator Dr. Oz has stated that the Minnesota Somali fraud scheme pales in comparison to what he has uncovered in California.
Dr. Oz estimates over $40 billion in fraud has been committed in Governor Gavin Newsom’s state — and that figure is confined to hospice and home care sectors alone.
Earlier this month, the Department of Justice launched an investigation into medical fraud in California.
Speaking at a press conference, Dr. Oz detailed how the scam operates.
Billions of dollars in alleged fraudulent healthcare spending are being investigated in California, specifically targeting foreign nationals operating illegal hospice facilities.
“We have witnessed a sevenfold increase in hospice services in Los Angeles County,” Dr. Oz said during the press conference. “This does not happen naturally.”
Dr. Oz noted that there has been no sevenfold increase in deaths in Los Angeles County over the past five years. “These are fraudsters, and they tend to be influenced by foreign entities — including Russian and Armenian gangs and mafia organizations,” he stated.
According to Dr. Oz, fraudsters run these facilities in partnership with approximately 100 unscrupulous doctors who convince patients they are dying to enroll them in hospice care. This has led to about 100,000 individuals surrendering their Medicare numbers.
United States Attorney Bill Essayli stated: “We are focused on this issue and believe the fraud in California will magnify what is occurring in Minnesota.” He added that “the level of fraud we see in California far exceeds that in Minnesota.”
Dr. Oz also revealed that the Trump administration has identified approximately $1.3 billion in federal funds spent on illegal immigrants for elective procedures. The state, he said, is returning these funds.
Essayli noted that hundreds of billions flow through California’s healthcare system, with an estimated $10 billion allocated to “illegal immigrant health care” — a practice that uses federal dollars improperly.
“No federal funds are supposed to be used for that,” Essayli said. He launched a task force in April to investigate corruption in the state, particularly related to homelessness.
