California’s Hospice Fraud Explosion: Billions Drained From Taxpayers

Authored by Steve Watson via Modernity.news,

The massive hospice fraud racket thriving under California’s lax oversight is finally getting the spotlight it deserves, as the Trump administration’s CMS chief Dr. Mehmet Oz hits the streets of Los Angeles to call out the billions in stolen taxpayer dollars.

With organized crime rings, including Russian-Armenian mafia elements, infiltrating the system through ghost patients and fake companies, the scam highlights how globalist policies have opened the door to foreign exploitation of U.S. resources. As fraudsters traffic beneficiaries like commodities, real Americans suffer denied care while the deep state looks the other way.

Los Angeles County alone accounts for 18% of the entire country’s home health care billing, a staggering figure that screams foul play.

The fraud being exposed in California is INSANE

– 18% of THE WHOLE COUNTRY’S home health care billing is coming out of Los Angeles County
– One doctor billed the government $120 million in a single year claiming to oversee 1,900 patients
– With almost 2,000 hospice agencies, Los… pic.twitter.com/0mTPG1ENL2

— Wall Street Apes (@WallStreetApes) February 1, 2026

One California physician billed the government $120 million in a single year, claiming to oversee 1,900 patients—a workload that defies logic and reeks of corruption.

The county boasts almost 2,000 hospice agencies, more than 36 states combined and 30 times the number in Florida or New York.

Dr. Oz, administrator for the Centers for Medicare and Medicaid Services, was forthright during his on-the-ground tour: “Hospice is crazy here… You’ve got hospice that’s grown seven-fold in the last five years. They represent about three and a half billion dollars of fraud, we believe, just in LA County.”

California Attorney General Rob Bonta has admitted the problem’s scale, calling it “an epidemic in California, specifically in the greater Los Angeles area.”

The fraud operates through recruiters who lure seniors with freebies like walkers or cash, harvest their Medicare numbers, and sell them to providers for $1,000 to $3,000 each. Providers then bill the feds $260 per day per patient, often for nonexistent services, while shuffling enrollees between sham outfits to evade detection.

In LA’s San Fernando Valley, particularly Van Nuys, the density is absurd: 210 agencies crammed into one square mile, with one building listing 112 hospices showing no actual operations.

Sheila Clark, president of the California Hospice and Palliative Care Association, exposed the human cost: “A Medicare MIB number is more lucrative than a credit card… They’re human traffickers. They’re trafficking beneficiaries in and out of hospices, home health.” She added, “We need to listen to these people when they say, ‘I’ve been scammed.’”

A notorious example is the Mirzoyan-Terdjanian ring, where 73 members were prosecuted for $100 million in fraud using phantom clinics, netting light sentences for racketeering and money laundering.

This constitutes a direct assault on American seniors and the integrity of the U.S. healthcare system, enabled by years of Democrat-led neglect that prioritized open borders over accountability.

While Governor Gavin Newsom claims credit for a 2021 moratorium on new hospice licenses and revoking over 280, the damage was done under his watch, with fraud ballooning unchecked for years. Critics point out that the Trump administration’s renewed federal push, including DOJ investigations, is what’s truly turning the tide against these scams.

Newsom has responsed by filing a civil rights complaint against Dr. Oz for highlighting Armenian community ties to the fraud, a move that reeks of deflection rather than real reform.

This mess underscores the failures of unchecked immigration and weak enforcement, allowing foreign actors to siphon billions meant for American citizens. It’s time for America First policies to root out these parasites and protect seniors from exploitation.

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