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Californians are discovering that fraud is not a bug, but a feature

Californians are becoming aware of just how rampant fraud is in the state.

After federal authorities arrested multiple people in Southern California this week for health care fraud, the top federal prosecutor in LA quipped that there might never be enough prosecutors to handle every case.

The public’s eyes have been opened.

Just as I uncovered widespread, massive fraud in Minnesota, so too are we finding out the extent to which alleged fraudsters have been systematically fleecing the Golden State.

The rot in California is so deep, one could spend a lifetime investigating it.

I was able to find what I believe is $170 million worth of fraud in just a few days while I investigated what was happening in LA.

The California Post Editorial Board called it “California schemin’” — and rightfully so.

These alleged fraudsters have figured out that a medical beneficiary number in California is more valuable than, say, stealing someone’s credit card.

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A medical beneficiary number is what these sham companies allegedly use to commit fraud by saying that somebody needs their services for hospice or home health. They then bill Medicare or Medi-Cal (the state’s version of Medicaid) for that money.

In a related case, a California couple was also arrested for allegedly billing more than $7 million through a fake hospice business, where the nonexistent “patients” had oddly high survival rates.

It’s a miracle! The hospice patients survived! (The only problem was, many of the patients didn’t exist.)

In some cases, including many that are likely still unknown, no services may have been provided to any patients.

Since I targeted hospice fraud in Southern California, authorities have now shut down over 100 hospices, and at least eight of these numerous alleged fraudsters (including doctors, nurses and even a psychologist) have finally been charged.

However, these schemes are likely just the tip of the iceberg.

Something super interesting is that if you look at the Medi-Cal budget in California from 2022 to 2026, it has gone up by more than $100 billion, while enrollments have only gone up by 100,000 people. In 2022, the enrollment was 13.9 million, while in 2026 it is 14 million.

That number suggests just how bad the fraud may be.

Try though they might, state leaders can’t plead ignorance. They see the cold, hard budget numbers.

To say that California Gov. Gavin Newsom was not aware of this fraud, and the waste of billions of taxpayer dollars, is simply not credible.

For the people of California who spend lifetimes stuck in traffic on freeways, going to and from their jobs, and paying their taxes on time, this fleecing of their hard-earned dollars is a big slap in the face.

It is beyond time to end all fraud, waste and abuse.

Thankfully, the Trump administration has tackled this issue — as they have so many other hard issues. Vice President JD Vance has been named the “fraud czar,” and California is one of his targets.

The once-innovative Golden State could normally lead the way on solving this, as it has done so many times in tackling other big issues.

However, Governor Newsom has his sights set on something much bigger, for himself at least: The White House in 2028.

He would be wise to look to the example set by Minnesota Gov. Tim Walz, who decided to shelve his political ambitions because of the scandals in his state.

Whether Newsom survives this growing scandal remains to be seen. For now, at least some of the “California schemers” will have their day in court.

And someone is finally standing up for California taxpayers, and for the California residents who depend on legitimate government programs.

Nick Shirley is an investigative journalist.Nick Shirley is an investigative journalist who uncovered massive widespread fraud in Minnesota. He now has his sights set on California and other states

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