California Attorney General Rob Bonta strongly rejected President Donald Trump’s allegations of widespread fraud in the state during a press conference in Los Angeles on Thursday.
“The Trump administration’s claims that state programs are overrun by fraud and that its government was itself perpetrating or facilitating this fraud is outrageous and ridiculous and without basis,” Bonta declared at the Ronald Reagan State Building.
The attorney general’s comments come as the Trump administration reportedly plans to create a California-focused anti-fraud task force, potentially led by Vice President JD Vance. President Trump previously announced on social media that “the fraud investigation of California has begun.”
Bonta emphasized California’s aggressive anti-fraud efforts, noting the state has recovered nearly $2.7 billion through criminal and civil prosecutions since 2016, including $740 million from Medi-Cal fraud cases.
The dispute intensified last week when Dr. Mehmet Oz, administrator for the Centers for Medicare and Medicaid Services, posted a video accusing Armenian crime groups of orchestrating hospice fraud in Los Angeles. The video, which received over 4.5 million views on X, sparked immediate backlash.
Governor Gavin Newsom filed a civil rights complaint against Oz on January 29, requesting a federal investigation into what he called “racially charged and false public statements.” Senator Adam Schiff also demanded an independent review, stating that suggesting “markers of Armenian culture, language, and identity are indicative of criminality underscores a discriminatory motive.”
Oz claimed that Los Angeles County accounts for approximately 18% of the nation’s home health and hospice Medicare billing activity, alleging a $3.5 billion fraud scheme. He pointed to specific buildings in Van Nuys where multiple businesses are registered to single locations.
The Armenian Bar Association condemned Oz’s statements as “ethnic profiling and dehumanizing rhetoric that unfairly stigmatizes a long-standing and law-abiding community.”
California officials argue the fraud allegations are politically motivated. Bonta highlighted similar cases in Republican-led states, including an $11.4 million healthcare fraud conspiracy in Florida and an $88.3 million Medicaid fraud case in Ohio.
“We know Vance hails from Ohio, so maybe he should take a look in his own backyard before leading an unnecessary political stunt focused on California,” Bonta said.
California has been addressing healthcare fraud since a 2020 Los Angeles Times investigation uncovered problems in the hospice industry. State authorities have charged more than 100 people with hospice-related fraud since 2021 and revoked approximately 280 hospice licenses.
Oz has made uncovering fraudulent billing by healthcare providers a centerpiece of his agenda since being appointed by President Trump. He recently sent a letter to Governor Newsom demanding a “comprehensive program integrity action plan” within three weeks.
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