Overview of California’s Fraud “Epicenter” & Guthrie Search Continues | 2.4.26
This episode of Morning Wire (Daily Wire, 2/4/26) covers three major news threads: CMS Administrator Dr. Mehmet Oz’s allegation that Los Angeles County is an “epicenter” of organized Medicare/Medicaid fraud (with a standoff between federal and California officials); the ongoing, potentially criminal, investigation into the disappearance of Nancy Guthrie (Savannah Guthrie’s mother) in Tucson; and a Daily Wire investigation that led to the CFO of the African Development Foundation pleading guilty to taking bribes — prompting renewed calls to shutter the agency.
California Medicare/Medicaid fraud allegations
- Claim and scope
- CMS Administrator Dr. Mehmet Oz says investigators have identified billions — potentially tens of billions — in Medicare and Medicaid fraud in California, concentrated on hospice and home-care billing schemes.
- Fraud examples: enrolling people in hospice unnecessarily (or forging consent), billing for home-care tasks (grocery shopping, cooking, cleaning) that weren’t provided.
- Oz suggested organized criminal networks (he referenced the “Russian‑Armenian” mafia in LA County) are coordinating large-scale schemes, pulling funds away from legitimate providers nationwide.
- Harm and human impact
- Oz emphasized both taxpayer loss and direct harm to seniors: people stripped of access to needed care after being mis-enrolled in hospice, and delayed or denied care when truly needed.
- Anecdote shared by Oz: a man allegedly signed into hospice under false pretenses, later lacked access to care and died.
- Federal actions and state response
- CMS has referred cases to the U.S. Attorney’s Office in Los Angeles and delivered a corrective-action plan to Governor Gavin Newsom with a 21‑day deadline.
- Governor Newsom filed a civil‑rights complaint with HHS accusing Oz of making baseless, racially charged public allegations and singling out the Armenian community in a public video.
- Oz defended his actions as motivated by protecting vulnerable seniors and stopping the flow of taxpayer money to scammers.
- Implications
- Possible large-scale prosecutions and federal-state friction over investigation methods and public messaging.
- Questions about community targeting and political pushback may complicate enforcement and public communication.
Nancy Guthrie disappearance — latest updates
- Case facts
- Nancy Guthrie, 84, mother of Today Show host Savannah Guthrie, was reported missing from her Tucson, AZ home after church friends found she’d missed services.
- Pima County Sheriff Chris Nanos has said investigators believe Nancy was taken from her home against her will.
- Crime-scene details (limited/withheld)
- Authorities have withheld some details (time window, specifics of evidence). Media outlets have reported blood and forced entry; the sheriff declined to confirm specifics publicly.
- Reports indicate Nancy’s Apple Watch disconnected around 2 a.m., but officials are cautious about narrowing time publicly to avoid compromising tips.
- The residence was processed as a crime scene and was reportedly cleared and turned back to the family within ~24 hours.
- Investigative developments
- Ring/doorbell footage from the neighborhood is being processed but not yet publicly released.
- Authorities are testing alleged DNA samples; processing can take time.
- An unverified ransom note demanding millions in Bitcoin was reportedly received and turned over to the Pima County Sheriff’s Office.
- Public response
- Savannah Guthrie posted a public plea emphasizing prayer and asking for her mother to be returned.
- What’s next
- Investigators continue to follow leads; sheriff’s office indicated next press briefing would depend on major developments.
African Development Foundation (ADF) bribery plea & fallout
- What happened
- The U.S. Attorney’s Office announced that Matthew Zahew (ADF CFO, as reported) will plead guilty to accepting bribes and lying to law enforcement.
- Reporting by Luke Rosiak revealed alleged systemic misuse of ADF funds: contracts and grants awarded to entities that returned money to Washington to fund D.C. office expenses and insiders.
- Example cited: Ganyam Limited (a contractor/grantee tied to an associate) reportedly kept more than $100,000 while paying Zahew $12,000 in kickbacks; ADF officials admitted to awarding no‑bid contracts and grants with questionable value.
- Political and legislative response
- Senator Mike Lee introduced an amendment to abolish the ADF shortly after the plea news. The amendment was tabled 58–42 (defeated); Democrats and enough Republicans voted against it.
- Lee criticized Republicans who didn’t support defunding and sought answers from those senators.
- Broader context
- The episode framed the ADF revelations as part of a wider concern about foreign‑aid agencies being used to enrich insiders, paralleling controversies about USAID.
- The plea increases pressure on Congress and oversight bodies to investigate and possibly restructure or eliminate the agency.
Key quotes & soundbites
- Dr. Mehmet Oz: “We have about one in $10 spent in America on home healthcare just in Los Angeles.” (used to illustrate scale)
- Oz (anecdote): Described a man tricked into signing hospice paperwork who later lacked care and died — underscoring human cost.
- Savannah Guthrie (Instagram plea): “We believe in prayer... bring her mom home.”
- Senator Mike Lee on ADF defunding vote: “Republicans acting alone could have, would have and should have defunded this today... I look forward... to hearing my colleagues explain this vote.”
Main takeaways
- Federal officials allege large-scale, organized Medicare/Medicaid fraud rooted in hospice/home-care billing in LA County; investigations and prosecutions may follow, but the dispute has already become politicized between CMS and California leadership.
- The Nancy Guthrie case has escalated from a missing-person search to a potential criminal investigation with signs pointing to abduction; evidence is being processed and an alleged ransom demand is under scrutiny.
- Investigative reporting led to a federal bribery plea by an ADF official, fueling bipartisan calls (and a failed Senate amendment) to abolish or reform the agency due to alleged misuse of foreign‑aid funds.
What to watch next
- CMS vs. California: HHS response to Newsom’s civil‑rights complaint; results of the 21‑day corrective-action review and any federal prosecutions in LA County.
- Nancy Guthrie investigation: confirmation on DNA tests, release (or not) of surveillance footage, verification of ransom note/Bitcoin address, and any arrests or named suspects.
- ADF legal proceedings: formal plea details for the CFO, any cooperating witnesses, additional indictments, and Congressional oversight hearings or legislative efforts to reform/defund the ADF.
Notes
- The episode included sponsor segments (Pure Talk, Balance of Nature, ZocDoc, EBCLIS, Toyota) but the summary above focuses on the news content and reporting.