Senator Adam Schiff has called for an independent investigation after Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, publicly accused Armenian American-owned businesses of operating a $3.5 billion hospice fraud scheme without presenting supporting evidence.
In a formal letter to Health and Human Services Inspector General T. March Bell, Schiff—who represents the largest Armenian American population in the United States—condemned what he termed "indiscriminate slander" against an entire ethnic community.
"These allegations peddle a racist conspiracy about California's Armenian American community," Schiff wrote, according to the Armenian Weekly. The Senator emphasized that suggesting "markers of Armenian culture, language and identity are indicative of criminality" reflects discriminatory intent that undermines civil rights protections.
Dr. Oz, a television personality appointed to lead CMS under the Trump administration, posted the allegations on official government social media accounts, raising concerns about the weaponization of federal authority against diaspora communities.
The controversy highlights the political significance of Armenian American communities, particularly in California, where they maintain substantial influence and have been vocal advocates for Armenia amid ongoing regional challenges. Schiff has represented Armenian American interests throughout more than two decades in Congress, including advocacy regarding the Armenian Genocide and support during Armenia's conflicts with Azerbaijan.
While Medicare fraud investigations are legitimate governmental functions, civil rights advocates argue that ethnic profiling in fraud prevention violates constitutional protections and creates dangerous precedents for targeting minority communities based on cultural markers rather than evidence of wrongdoing.
The allegations come as Armenia faces mounting geopolitical pressures following military defeats in Nagorno-Karabakh and increasing isolation from traditional security partner Russia. Armenian diaspora communities, particularly in California, France, and Lebanon, provide crucial political support and economic assistance to the homeland.
In the Caucasus, as across mountainous borderlands, ancient identities and modern geopolitics create intricate patterns of conflict and cooperation. The targeting of diaspora communities in the United States reflects broader anxieties about ethnic identity, assimilation, and the role of immigrant communities in American political life—concerns that extend beyond any single administration but take on particular significance when voiced by federal officials wielding regulatory authority.
The HHS Office of Inspector General has not yet commented on whether it will pursue the independent review Schiff requested. Armenian American advocacy organizations, including the Armenian National Committee of America, have condemned Dr. Oz's statements and called for his recusal from matters affecting the community.
The incident underscores tensions surrounding diaspora political influence. Armenian Americans have been particularly effective in mobilizing congressional support for Armenia, securing foreign aid appropriations and advocating for recognition of historical grievances. This political engagement, while consistent with American democratic traditions, has drawn criticism from those who view diaspora advocacy as inappropriate foreign influence.
Dr. Oz's allegations, whether based on legitimate fraud indicators or reflecting ethnic bias, risk chilling legitimate business activity and stigmatizing an entire community. The request for an independent investigation aims to determine whether CMS enforcement actions targeting Armenian American businesses follow evidence-based protocols or reflect discriminatory profiling.
The outcome will have implications beyond this specific case. Federal agencies routinely investigate healthcare fraud, but the methods used—particularly whether ethnic or cultural characteristics trigger heightened scrutiny—must comply with civil rights law. If the Inspector General finds evidence of discriminatory enforcement, it could prompt reforms in how CMS conducts fraud investigations across all communities.
For Armenian Americans in California, the controversy represents a painful reminder of how diaspora communities navigate dual identities—American citizens while maintaining deep connections to ancestral homelands facing existential challenges. The community's political mobilization on behalf of Armenia reflects both attachment to heritage and exercise of American civic participation. Whether federal officials view that engagement as legitimate advocacy or suspicious foreign loyalty remains a point of contention with profound implications for how America understands pluralism and diaspora citizenship.
