Dr. Oz EXPOSES Mafia Stealing From Dying Americans

Dr. Mehmet Oz exposed Los Angeles as America’s hospice fraud capital, where criminals allegedly steal billions from dying Americans’ care using mafia tactics—yet Governor Newsom branded it mere political theater.

Story Snapshot

LA County hosts nearly 2,000 hospices billing Medicare $3.5 billion annually, with Oz estimating half fraudulent.
Federal raids in April 2026 arrested over a dozen in $60 million “Operation Never Say Die,” targeting sham facilities with impossible 85% patient survival rates.
Newsom’s office dismissed Oz’s warnings as MAGA-driven, touting state’s 2021 moratorium and 280 license revocations.
Van Nuys neighborhood packs 42 hospices into four blocks, enabling “license flipping” and patient Medicare “ownership.”
Fraud preys on seniors with cash kickbacks and fake enrollments, blocking real end-of-life care.

Los Angeles Emerges as Hospice Fraud Epicenter

Federal investigators pinpoint Los Angeles County as ground zero for Medicare hospice scams. Nearly 2,000 providers bill $3.5 billion yearly, fueling Dr. Oz’s charge that half operate fraudulently. Van Nuys packs 42 hospices into four blocks of multi-tenant buildings. Criminals flip licenses to dodge oversight, “own” patients’ Medicare numbers, and block legitimate care. This explosion followed a sevenfold growth in providers over five years before 2021. Lax rules allowed phantom facilities to thrive, enrolling healthy seniors for profit.

Dr. Oz Launches Federal Crackdown

CMS Administrator Dr. Mehmet Oz spotlighted LA’s “kingdom of fraud” in early 2026 Fox Business interviews. He accused “Russian mafia” and “Armenian mafia” networks of running shell companies with impossible patient death rates. Oz announced nationwide moratoriums on hospice equipment, full California audits by year-end, and plans to revoke half the state’s licenses. VP Vance’s task force drove “Operation Never Say Die.” Arrests hit Covina, Anaheim, and Glendale on April 2, 2026. Defendants face up to 20 years.

Key Arrests Reveal Brazen Schemes

Federal raids charged 15 people, including nurses, a psychologist, and a chiropractor, in a $60 million plot. Lolita Minerd ran Topanga Hospice Care, billing $9.17 million with an 85% survival rate—five times the national average. Gladwin and Amelou Gill used their daughter’s name to hide criminal pasts, pocketing $5.2 million via kickbacks and fake services. Nita Palma operated three hospices from prison. Recruiters paid patients $300 monthly plus vitamins to enroll despite good health. Medicare paid out over $4 million before shutdowns.

Newsom Counters with State Actions

Governor Gavin Newsom’s spokesperson Izzy Gardon rejected Oz’s claims as politically motivated by “MAGA bloggers and idiots.” California imposed a 2021 moratorium on new licenses and formed a multi-agency task force with CDPH, CalHHS, DHCS, DSS, and DOJ. They revoked about 280 licenses. AG Rob Bonta labeled it an “epidemic” in 2025, noting kickbacks and false claims targeting unaware seniors. State officials stress preemptive crackdowns, contrasting federal escalations. Hundreds of suspect providers remain active.

Federal-State Clash Exposes Oversight Gaps

Oz frames the crisis as taxpayer theft demanding federal muscle, given LA’s unique scale unmatched in 49 states. Newsom defends state diligence while accusing Oz of ethnic profiling via mafia references—claims absent in prior LA Times probes. CMS clarified Oz’s $3.5 billion as total billing, not proven fraud. Facts align with conservative priorities: protecting vulnerable seniors and curbing waste through rigorous enforcement. Common sense demands results over rhetoric—state revocations fell short, justifying federal intervention.

Impacts Ripple to Seniors and Taxpayers

Short-term arrests disrupted schemes, recovering millions while stranding “owned” patients from real care. Long-term, audits promise tighter national oversight, potentially spreading California’s moratorium model. Vulnerable elderly suffer blocked access; LA’s Armenian and Russian communities face profiling concerns. Economic toll hits billions; social trust in end-of-life services erodes. Political tensions peak between Trump administration and Newsom, highlighting federalism fractures in fraud fights.