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.

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)

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." |

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

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.