Dr. Oz’s Viral Video Sparks Backlash: Southern California Businesses Suffer After Fraud Allegations (2026)

A viral video by Dr. Oz, a prominent health official, has caused an uproar in Southern California, with local businesses bearing the brunt of its impact. The video, which alleged widespread healthcare fraud in Los Angeles County, has led to a significant drop in foot traffic and revenue for nearby businesses.

In a quiet shopping center in Van Nuys, the real estate agency owned by Edward Akhparian has seen a noticeable decline in customers. Akhparian, along with other business owners in the area, attributes this to the controversial video posted by Dr. Oz, where he stood outside their premises and made allegations of fraud.

"People aren't coming; they're scared," Akhparian said, expressing his frustration.

The video, which has since gone viral, showed Oz driving through the neighborhood and pointing out the high number of hospices in a small area, raising suspicions of fraud. He then singled out a specific business, identifying it as a hospice center and making claims about a $3.5 billion fraud scheme involving hospices and home healthcare businesses in Los Angeles.

"Quite a bit of the alleged fraudulent activities are run by the Russian Armenian mafia," Oz stated, drawing attention to the Armenian language signage in the area.

This statement has sparked outrage and accusations of ethnic profiling from local community members and elected officials. Rep. Laura Friedman and Los Angeles City Councilmember Adrin Nazarian have both condemned Oz's video, with Nazarian calling it "blatant racism."

"Why the focus on Armenian and Cyrillic languages?" Nazarian questioned. "Us Armenians know exactly what this is; it's propaganda."

The controversy surrounding Oz's video has not gone unnoticed by the state government. Gov. Gavin Newsom's office has filed a civil rights complaint with the U.S. Department of Health and Human Services, demanding an investigation into Oz's allegations.

"CMS and law enforcement will keep doing the actual work: going after fraudsters, period," Oz responded to the governor's office's announcement.

While California has indeed faced healthcare fraud issues, Newsom and other officials argue that the state has been actively addressing the problem long before the Trump administration's involvement.

In fact, following a 2020 Los Angeles Times investigation into fraud among hospice providers, Newsom signed a bill placing a moratorium on new hospice licenses in the state, which is still in effect.

Additionally, the California Department of Public Health has revoked the licenses of over 280 hospices in the past two years and is reviewing another 300 for possible revocation.

Despite the support from some customers who are actively showing up to patronize the affected businesses, the impact of Oz's video has been devastating for many local entrepreneurs.

"I'm angry, I'm frustrated," said Edgar Gabrielyan, owner of The 1 & Only Insurance Services. "It's hard to make a living when your business takes a 20-30% hit."

The controversy surrounding Dr. Oz's video raises important questions about the impact of public allegations on local communities and the potential for ethnic profiling. It also highlights the need for a balanced approach to addressing healthcare fraud without targeting specific ethnic groups.

What are your thoughts on this situation? Do you think Dr. Oz's video was justified, or did it cross a line?

Dr. Oz’s Viral Video Sparks Backlash: Southern California Businesses Suffer After Fraud Allegations (2026)
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