California is fraud central – Latest News
The rampant fraud uncovered within the state of Minnesota has shocked America and ended the political profession of Gov. Tim Walz.
Yet as I advised Attorney General Pam Bondi at a current House Judiciary Committee listening to, the fraud in Minnesota pales compared to what taxpayers have suffered in California.
California is undoubtedly the Fraud Capital of America.
Here’s what we already know.
The rampant fraud uncovered within the state of Minnesota has shocked America and ended the political profession of Gov. Tim Walz. AP
California is undoubtedly the Fraud Capital of America. Debra L. Rothenberg/ZUMA / SplashNews.com
The state allowed an estimated $32 billion in unemployment fraud during the COVID years, far more than any state, after ignoring “repeated warnings.” Perhaps more stunningly, the state auditor lately discovered unemployment fraud is nonetheless costing the state billions.
Incidentally, partially as a result of of this staggering fraud, California was pressured to take out a $20 billion loan from the federal authorities to shore up its unemployment advantages. The state then defaulted on the loan – the one state to take action – triggering an computerized tax increase on employers.
In addition to unemployment fraud, a current state audit reported billions more in SNAP, Medicaid, and Medicare improper funds.
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The scathing report discovered the quantity of “high-risk” companies, which exhibit severe “waste, fraud, abuse, or mismanagement,” has doubled during Gov. Gavin Newsom’s tenure, from 4 to eight.
We additionally learn about thousands and thousands in financial assist fraud tied to 1.2 million pretend group faculty purposes, and $52.7 million improperly sought and obtained in federal reimbursement requests for unlawful immigrant health care (uncovered by the Biden administration).
In addition, Dr. Mehmet Oz, President Donald Trump’s administrator of the Centers for Medicare & Medicaid Services, is investigating billions of {dollars} in extremely suspicious reimbursement claims within the hospice industry. Small Business Administrator Kelly Loeffler has additionally recognized billions more in fraud involving California SBA loans.
The state allowed an estimated $32 billion in unemployment fraud during the COVID years, far more than any state Debra L. Rothenberg/ZUMA / SplashNews.com
But what is actually alarming is the seemingly fraud we don’t learn about.
Consider, for instance, homelessness spending.
A state audit that I initially requested as a state legislator discovered that $24 billion was spent over 5 years in California to fight homelessness – but the homeless population exploded. The state couldn’t account for the place these funds went or level to any benchmarks to measure outcomes of the spending.
Or take into account the high-speed rail mess. The state has spent $17 billion over 17 years with out laying any observe.
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That’s why I launched laws to cut off all additional funding, and President Trump lately signed a invoice to just do that. I’ve additionally requested the FBI to research the place all of the money went.
Curiously, amidst this new scrutiny, Newsom is pushing laws to keep paperwork regarding the project secret by means of an exemption from the Public Records Act.
Or take into account that Californians have been charged further charges on their telephone payments for the final six years to fund a “Next Generation 911 System.” Yet after spending $450 million, the state simply scrapped the entire project as a result of the technology didn’t work.
Newsom has proven little or no curiosity in reining in all this fraud; on the contrary, he has repeatedly vetoed accountability measures.
Consider, for instance, homelessness spending. Debra L. Rothenberg/ZUMA / SplashNews.com
So we’re bringing accountability from Washington.
On prime of slicing off high-speed rail funding, we’ve already stamped out most of the group faculty fraud. My colleague Young Kim and I requested that Secretary of Education Linda McMahon institute new id verification necessities.
We have additionally seen a number of federal indictments come down in reference to homelessness funding fraud, and have each cause to imagine this is simply the tip of the iceberg.
Following investigations by the House Oversight Committee, the Trump administration has introduced that a “strike team” shall be on the ground in Sacramento to root out insurance coverage fraud.
The 911 fiasco is now going through a federal investigation from the FCC, and requires an audit from state lawmakers.
And the Department of Justice has additionally named a new “fraud czar,” with the president designating Vice President JD Vance to supervise fraud prevention nationwide — with a specific concentrate on California.
These efforts may spell the tip of Gavin Newsom’s presidential ambitions – and a new starting for the people of California.
Since Newsom took workplace, the finances has grown from $202 billion to $352 billion. Yet there is nothing to show for it.
Indeed, all the pieces has gotten worse, with the state main the nation in poverty, unemployment, homelessness, and illiteracy.
And now, the state is contemplating a new “wealth” tax to easily seize the belongings of high-net-worth people, on the idea that the state wants even more money.
Needless to say, the state doesn’t have a income drawback. It has a spending drawback – the place taxpayer {dollars} are too typically given away to criminals who’ve discovered our authorities to be the best and most profitable of targets.
Kevin Kiley represents California’s third congressional district within the U.S. House of Representatives.
