"Trump administration officials announced a sprawling probe into benefits fraud across California on Friday, citing what they called a massive, coordinated effort by "foreign actors" to fleece government healthcare to the tune of billions of dollars. The crackdown appeared to center on bogus hospice providers first exposed by The Times in 2020 and later investigated by California Atty. Gen. Rob Bonta. "Eighteen percent of the whole country's home healthcare billing is coming out of Los Angeles County - how is that possible?" said Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services. "It's about $3.5 billion just in L.A. County for hospice and home healthcare.""
"The move comes just days after Washington froze $10 billion in federal funding for child care in California, New York, Colorado, Illinois and Minnesota over "serious concerns about widespread fraud and misuse of taxpayer dollars." In a lawsuit filed Friday, the states' attorneys general called the child-care fund freeze nakedly political, saying the administration has weaponized allegations of fraud to blame immigrants for holes in the safety net and tar political rivals as corrupt."
"At the briefing Friday, Oz and Essayli told reporters "foreign influences" were draining government healthcare programs, making care inaccessible to Americans while California leaders turned a blind eye. "These are Russian, Armenian gangs, mafia that are leading a lot of these efforts," Oz said. "This president will not tolerate having Americans defrauded by foreign influences.""
Federal authorities announced a large-scale investigation into benefits fraud across California, alleging a coordinated effort by foreign actors to siphon billions from government healthcare. The probe focuses on purportedly bogus hospice and home-healthcare providers concentrated in Los Angeles County, which accounts for an unusually large share of billing. Officials estimate roughly $3.5 billion in hospice and home-healthcare billing originates in Los Angeles County. Washington also froze $10 billion in federal child-care funding across five states over alleged widespread fraud and misuse. State attorneys general have sued, calling the freeze politically motivated and accusing the administration of weaponizing fraud allegations against immigrants. Organized criminal groups, including named foreign gangs, were accused of orchestrating many schemes and reducing access to care.
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