California’s latest Billion‑Dollar Fraud Hustle-42 Hospices, 4 Blocks & Zero Patients

Summary

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Episode Overview

Title: California’s latest Billion-Dollar Fraud Hustle—42 Hospices, 4 Blocks & Zero Patients
Host: Ben Ferguson
Date: January 31, 2026

In this episode of "The 47 Morning Update," Ben Ferguson digs into revelations of massive healthcare and Medicaid fraud, spotlighting new investigations into suspicious hospice operations in Los Angeles and related schemes in Minneapolis, as exposed by Dr. Oz. Ferguson explores the alleged links between organized crime, corrupt politicians, and voting blocs, emphasizing the scale and audacity of these frauds and their impact on taxpayers.

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Key Discussion Points & Insights

1. Uncovering the Los Angeles Hospice Fraud

• Dr. Oz has identified an extraordinary cluster of 42 hospice businesses within a four-block radius in Van Nuys, Los Angeles—an implausible concentration pointing toward systemic fraud.

• Many of these organizations, labeled in Armenian and Russian, are said to be connected to the Russian-Armenian mafia, running a $3.5 billion fraud scheme in hospice and home care.

  Quote:

  "In this four block area in Los Angeles, there are 42 hospices. So either there are a lot of people dying here or you've got fraudulent activity that is so good that everyone wants to get in on it."
  – Dr. Oz (03:27)

• The physical locations were found to be inoperative, with little to no evidence of real services being provided.

• Fraudsters fabricate patient lists and services, using false doctor prescriptions and manipulating patient beneficiary numbers, with one individual serving only two years in jail after stealing $16 million.

  Quote:

  "They weren't doing any services. They just got an address they could claim was a hospice and then they ran the business claiming people were at home getting services, which they really weren't." – Dr. Oz (04:07)

• The host emphasizes the width of the fraud, spanning billions and implicating hundreds of doctors and tens of thousands of patient identities.

  Quote:

  "Roughly three and a half billion dollars of fraud taking place here in Los Angeles in hospice and home care... It's run quite a bit by the Russian, Armenian mafia." – Dr. Oz (04:36)

2. Similar Medicaid Fraud in Minnesota

• Dr. Oz highlights a comparable phenomenon in Minneapolis, where a converted linen factory houses around 400 Medicaid-related businesses allegedly generating $380 million in fraudulent billings.

  Quote:

  "You'll notice all those little signs there, and there's tons of little businesses inside. Roughly 400 Medicaid businesses were starting the building behind me. Over the last several years, they generated about $380 million of billing that you, the taxpayer, were putting up."
  – Dr. Oz (05:49)

• The physical setting is unsuitable for care—further proof of the artificial nature of these businesses.

• Dr. Oz expresses concern at the lack of state intervention until federal authorities took notice, noting a culture of looking the other way.

  Quote:

  "How is it possible this could be come up like an abscess in the heart of Minneapolis and nobody was watching? I think it's because they weren't looking." – Dr. Oz (06:33)

• Surveillance and intimidation tactics were reported when Dr. Oz visited, illustrating the entrenched, organized nature of the scheme.

3. Political Links and Community Voting Blocs

• Ferguson points to the political protection and entanglements that shield such frauds.

• He alleges that Democrats are recipients of funding from these networks, implying a "pay to play" system where votes and campaign support are exchanged for political protection of illicit activities.

  Quote:

  "Democrats have made a deal with the devil with the worst and the most corrupt people to make sure that the money flows into their coffers so that they can win reelection." – Ben Ferguson (09:03)

• Ferguson claims this practice translates into powerful voting blocs (Somali communities in Minnesota, Armenian communities in LA), who are said to vote collectively in exchange for continued benefits or cover for their fraudulent operations.

4. Call for Federal Action

• Ferguson applauds the President and DOJ for investigating, underscoring the threat to American taxpayers and the integrity of public services.

  Quote:

  "If they don't ask these questions, then what happens? More of our money gets stolen and that's something that should make all of us angry." – Ben Ferguson (10:52)

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Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|----------------|-------------------------------------------------------------------------------------------------------------------------| | 03:27 | Dr. Oz | "In this four block area in Los Angeles, there are 42 hospices. So either there are a lot of people dying here or you've got fraudulent activity..." | | 04:07 | Dr. Oz | "They weren't doing any services. They just got an address they could claim was a hospice and then... ran the business..."| | 04:36 | Dr. Oz | "Roughly three and a half billion dollars of fraud taking place here in Los Angeles in hospice and home care..." | | 05:49 | Dr. Oz | "Roughly 400 medicaid businesses were starting the building behind me. ... generated about $380 million of billing..." | | 06:33 | Dr. Oz | "How is it possible this could be come up like an abscess in the heart of Minneapolis and nobody was watching?..." | | 09:03 | Ben Ferguson | "Democrats have made a deal with the devil with the worst and the most corrupt people to make sure that the money flows..."| | 10:52 | Ben Ferguson | "If they don't ask these questions, then what happens? More of our money gets stolen and that's something that should make all of us angry." |

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Important Timestamps

• 02:04 – Introduction to the LA hospice fraud and Dr. Oz's findings
• 03:17 – Dr. Oz describes the LA hospice fraud, mafia links, and the scope of the issue
• 05:25 – Shift to Minnesota Medicaid fraud uncovered by Dr. Oz
• 07:53 – Ben Ferguson contextualizes the pervasiveness of these frauds beyond Minnesota
• 08:39 – Ferguson discusses political protection, voting blocs, and who benefits
• 10:52 – Ferguson's call for federal accountability and closing remarks

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Summary & Relevance

Ben Ferguson’s coverage, drawing on Dr. Oz’s investigative work, reveals the yawning gap in oversight and accountability in nationwide public health programs, with billions in taxpayer funds at risk. The detailed cases from LA and Minneapolis expose intersections between organized crime, vulnerable systems, and politics—calling into question the integrity of state and federal monitoring. Ferguson positions the episode as a wake-up call for broader action and public awareness.

The episode’s direct, provocative language, combined with on-the-ground commentary from Dr. Oz, gives listeners a sense of urgency about the fight against systemic fraud and the need for political will to stop it.

Transcript

[A]

This is an iHeart podcast. Guaranteed Human.

[B]

Friday. Kick off the Winter Olympics in style with the opening ceremony from Italy featuring a special performance by Mariah Carey. Celebrate the greatest athletes from around the globe as they come together to go for gold. Lipsy for sensational. The opening ceremony of the Winter Olympics. Ilia Malady redefining the sport Friday at 8 Eastern, 7pm Central on NBC. And Peacock.

[A]

Crime is way down and one of the reasons was we've taken a lot of bad people and gotten them out of our country. In some cases they're so bad that we put them in prison because we don't want them to even take a chance of coming back in. Even though our border is very secure, record setting secure. We had zero illegal aliens being admitted into our country for the last eight months. That's hard. That's hard for even me to believe. You're listening to the 47 Morning Update with Ben Ferguson.

[B]

Good Saturday morning. Good morning. It's so nice to have you with us on the 47 Morning Update. And we've got one big story for you. Massive fraud being uncovered by the Federal Government and Dr. Oz leading the way and telling the story of how your money is being stolen from Minneapolis to Los Angeles. Before we get to that though, can you buy real bitcoin in your retirement account? If not, it's time to upgrade to bitcoin Ira. You can buy and sell bitcoin with major tax advantages. Visit Bitcoin ira.comBen to learn more. Right now, that's Bitcoin ira.comBen or call 866-679-7871. That's 866-679-7871. It's the 47 Morning Update and it starts right now.

[A]

Story number one, fraud, fraud and more.

[B]

Fraud is being found. Many inspired to ask more questions after what we witnessed with a massive Somali fraud costing taxpayers billions of dollars in Minnesota. Well, now you can look at a Los Angeles neighborhood that is the home to 42 hospices in a four block radius. That is the new claim coming from Dr. Oz. Dr. Oz is now saying he has uncovered rampant healthcare fraud in the state of California declaring he found a whopping 42 hospices in just a four block radius. That is impossible. Oz, the head of the Centers for Medicare and Medicaid, he posted a video Tuesday cruising through this area pointing to medical buildings plastered with Armenian writing and claiming they're tied to a multi billion dollar hospice and home care fraud scheme. In this four block area in Los Angeles, there are 42 hospices Dr. Oz said. Take a listen to Dr. Oz as he explains the story.

[A]

So you can see these are medical buildings. They've got Cyrillic writing, Russian, Armenian writing, both sides. There's lots of action it seems. I don't know how many patients are getting care, but in this four block area in Los Angeles, there are 42 hospices. So either there are a lot of people dying here or you've got a fraudulent activity that is so good that everyone wants to get in on it. I'm in Van Nuys in Los Angeles and this boarded up area above my head here is a big hospice center. There are apparently quite a few hospices around here. 42 within a four block radius. And these guys stole $16 million. Listen carefully. The main guy went to jail for two years stealing $16 million. It's a good trade off for a lot of folks. And if you look at it, it's pretty indescript. There wasn't anyone really in there. They weren't doing any services. They just got an address they could claim was a hospice and then they ran the business claiming people were at home getting services, which they really weren't. What we have learned is there's roughly three and a half billion dollars of fraud taking place here in Los Angeles in hospice and home care. It's run quite a bit of it by the Russian, Armenian mafia. You notice the lettering and, and language behind me is of that dialect. And it also highlights the fact that this is sort of an organized crime, you know, mafia deal where you've got folks who have systemically recruited doctors to write false prescriptions. You know, hundreds of doctors participating. They've got 100,000 patients who they've tricked or paid to give them their beneficiary numbers so they can perpetuate the frau fraud. And then the criminals are just running the whole organization and quickly scurrying away when law enforcement does get around to prosecuting them. Unfortunately, in California there has not been a lot of attention on these problems. That's going to change. The U.S. attorney, the FBI, everyone's now focused on the fact that in this state, which has about $30 billion worth of home and community based services, most of it might be fraudulent. Those are big numbers and we're taking it seriously.

[B]

Now this isn't the only fraud that Dr. Oz has exposed in the last week. There was also another aspect of fraud that he has uncovered and it deals with what they've found in Minnesota. I want you to listen to Dr. Oz and his own words on that.

[A]

Other fraud behind Me is the Griggs Midway Building. It looks like a factory because it was a factory, a linen factory. They made cloth back there, converted to an office building. You'll notice all those little signs there, and there's tons of little businesses inside. Roughly 400 Medicaid businesses were starting the building behind me. Over the last several years, they generated about $380 million of billing that you, the taxpayer, were putting up. That means roughly each business had a million dollars of billing. It's an industrial area. There's no reason that you have a mother bring her child. You can't imagine getting extra business support. An autistic child probably wouldn't want to come here. You hear the noise? It's just not a hospitable place. The question is, how Is it possible 400 businesses building almost $400 million were able to thrive here? What did the owner of the business, this building, think was was happening inside? Why did no one in the state figure out this is a concern? And perplexingly to me, in a place of this nature, an industrial complex that people would not come to for child care or autism care or transportation support, how is it possible this could be come up like an abscess in the heart of Minneapolis and nobody was watching. I think it's because they weren't looking. They didn't want to know that this problem was happening here. And it's very concerning to me that only now, when there's more federal supervision are people beginning to ask tough questions. So you'll notice there's already a watch group that's observing us. They had people in the cars taking pictures of us. They're calling around, trying to find out what's going down. And I'll tell. They don't have to, you know, wonder. I'm really telling you, we're here to figure out why these folks are being defrauded, why the people who live in Minnesota aren't getting access to the care they deserve because it's been stolen. But the fact that you've got people behind me in cars concerned that we're even talking about this story should be something that worries you. It bothers me. There's been a censoring of truth, an inability just to own what's happening in their state, that's concerning to me. They talk about being nice in Minnesota. I want to be nice, too. But a person who's a good person doesn't have to always be nice. They got to be truthful and be honest. And sometimes you got to tell people stories. They don't want to hear. That's what doctors do, and that's what we're going to do here in Minnesota. Tell you the truth.

[B]

Tell you the truth. What you notice there from Dr. Oz, he was standing with Jim O'. Neill. They said they discovered a former linen factory in Minnesota that was converted into 400. 400 Medicaid businesses generating nearly half a billion dollars. This type of fraud isn't just in Minnesota. This type of fraud isn't just in Minneapolis. This type of fraud. What you're witnessing now is literally all over the country now. Democrats are fighting back. And you have to ask yourself a question.

[A]

Why?

[B]

Why are they becoming so violent? Why are they becoming so angry? Why are they losing their minds that this is being exposed? There's a simple answer. Follow the money. Now, when I say follow the money, you look at Democrats and the amount of money that they are receiving is incredible. From so many of these organizations that are running the fraud, they want the money to keep coming in. The amount of money is truly incredible. The amount of money that is going to all of these different men and women who are protecting the fraudsters. It's pay to play. Everyone knows that this is pay to play. And Democrats have made a deal with the devil with the worst and the most corrupt people to make sure that the money flows into their coffers so that they can win reelection. Now, this is also about votes. In many of these areas, there are large voting blocks of individuals. Somalians in Minnesota, for example, or the Armenians in LA that you just heard Dr. Oz talk about. One of the things that they're very clear on is that if you want one of our votes, you gotta buy it and get the entire community. They don't vote independently. They vote as a block for whoever will hook them up and take care of them. And part of the taking care of them is actually really simple. It's about covering up and protecting the fraud that's taking place. And these politicians are, in essence, getting a direct kickback. I'll let you do the fraud. You get millions of dollars. You just got to make sure you take care of me. You got to make sure that you give me the money that I deserve as a kickback for helping you and looking the other way. So this is a massive. I want to say that again. This is a massive deal. And the President, United States of America, is absolutely right to be asking questions and for the DOJ to ask questions, because if they don't ask these questions, then what happens? More of our money gets stolen and that's something that should make all of us angry.

[A]

Thank you for listening to the 47 Morning Update with Ben Ferguson. Please make sure you hit subscribe wherever you're listening to this podcast right now. And for more in depth news, also subscribe to the Ben Ferguson Podcast and we will see you back here on Monday morning. This is an iHeart podcast. Guaranteed Human.