Tim Walz is on the way out. But now more heads are rolling.
Because Billions in fraud was exposed and another Democrat’s career is over.
Billions in Healthcare Fraud Alleged in California Probe
A federal investigation has uncovered billions of dollars in alleged fraudulent healthcare spending in California, focusing on foreign nationals operating illegal hospice facilities, according to statements from Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz during a press conference on January 9, 2026.
Dr. Oz highlighted a sevenfold increase in hospice facilities in Los Angeles County over recent years, describing it as unnatural and not linked to higher death rates.
Dr. Oz stated, “We have witnessed a sevenfold increase in hospice in LA County, sevenfold. That doesn’t happen naturally.”
He added, “There is not seven times more deaths in LA County than there were five years ago. These are fraudsters, and these do tend to be foreign influences, either Russian and Armenian gangs, mafia, that are leading a lot of these efforts.”
The fraud reportedly involves approximately 100 doctors who enroll patients in hospice care by convincing them they are terminally ill, resulting in about 100,000 people providing their Medicare numbers. U.S. Attorney Bill Essayli, who is leading aspects of the probe, indicated the scale in California exceeds similar issues in Minnesota, saying, “What’s happening in Minnesota pales in comparison to the level of fraud that we believe is occurring in California.”
Dr. Oz emphasized the administration’s focus, noting, “We are major focused on this issue, and I think our suspicion, our belief, is that the fraud in California will magnify whatever’s happening in Minnesota.”
Newsom’s Response to the Allegations
California Gov. Gavin Newsom pushed back against the claims in a post on X, defending his administration’s record on fraud prevention.
He wrote that he has “blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artist Trump celebrates, excuses, and pardons.”
The allegations are part of broader Trump administration efforts to address waste and fraud in federal healthcare programs, including the recent appointment of a new attorney general position dedicated to tackling such issues.
Broader Context of Healthcare Fraud Investigations
The California probe is ongoing, with officials highlighting foreign influences in the schemes. No specific total dollar amount for the California fraud has been finalized publicly, but it is described as involving billions in alleged improper spending.
This comes amid national scrutiny of Medicaid and Medicare programs, where similar fraud concerns have been raised in other states like Minnesota. The press conference included officials from the Department of Justice and CMS, underscoring a coordinated federal response to these allegations.
