Wednesday, June 10, 2026

Government Taxpayer Fraud and Corruption, Part 5: Minnesota (Again), Mediciad (Again), Small Business Adminstration, and Everywhere Else

 We are going to  spend a lot of discussion time in the coming posts to review the massive amount of criminal fraud that has infected government programs for many, many years.  The outstanding investigations recently done,  and still being  done, by independent journalist,  Nick Shirley, has started a cascading identification of the numerous fraud instances at all  levels of government  across the country.


It is unbelievable how many billions of  dollars have been wasted and are currently being wasted and siphoned off by all types  of criminal activities. And while it is amazing how much taxpayer wealth has been wasted and lost, possibly even more amazing is the reality that through the decades the political class and the government  entities they overlook were unable or unwilling to stop the fraud.


1)Let’s get started with our favorite fraud infested state, Minnesota:


  • Federal  prosecutors recently announced that they had charged a Minnesota  care owner with wire fraud  and conspiracy to defraud the United  States.

  • They accused the alleged culprit of  using the Covid child nutrition  program to enrich herself as  a result  of  submitting  grossly  inflated  claims for compensation.

  • The accused operated the Future Leaders Early Learning  Center  and defrauded the Child Nutrition Program under the corrupted Feeding Our Future fraud scheme.

  • In a single month, July, 2021, the alleged culprit  collected a whopping $854,000 in Federal  government nutrition  funds.

  • She collected an  additional  $4.6 million from October, 2022  through December, 2025.

  • Federal authorities say most of those funds never made it into food to feed kids.

  • Prosecutors claim that the operator tried to flee to London  earlier this year but was stopped  from doing so.


It makes you wonder if there was ever an  honest and real  charity  operating in  the state.


2)HHS Secretary Robert  Kennedy Jr.  has been busy announcing additional fraud  schemes across the  country:


  • He  recently announced that Federal investigators uncovered  the largest autism fraud in American  history.

  • Kennedy says that the fraud scheme eventually and illegally collected over $480 million  of taxpayer  money.

  • Specifically:I want to start. I thought I was going to have a slide here. I want to call your attention to this, which is in your, okay, here it is, which is in your packet. This was the cost of your early intervention and development program in 2020 it was 38 point 1 million. This is what we expected to be paying every year. Instead, this year hit 442 million, and I’m showing you that because that’s the magnitude of the fraud and the damage that we’re talking about today.” 

  • He  continued:  “Today’s arrest represents the largest autism fraud bust in American history. This was not a paperwork error, it was not a technical violation. This was organized threat, organized theft that exploited the most vulnerable children in America. Deceived families stole taxpayer dollars meant to help children with autism with autism access legitimate care and support.”

  • The fraudsters billed the government for services that were  never provided, fake diagnoses, and fake care claims.


Still so  disgusting that these fraudsters took  money that was intended to  feed hungry kids in a time  of need and  provide medical services to  kids with autism.


3)Small Business Administration head, Kelly Loeffler, recently discussed the  massive fraud that infected the  Paycheck  Protection  Program during the Covid  period:


  • She said that about $200 BILLION in fraudulent loans occurred during the pandemic.

  • Specifically:  “At the SBA, we found $200 billion in fraudulent PPP loans that the Biden administration tried to hide, and forgive, and sweep under the rug.” 

  • The $200 billion suspected fraud is obviously the worst fraud scheme we have discussed so far, far worse than any  previous accusations of fraud in any government program.

  • She said that $22 billion of the fraud had already been passed onto the Justice and Treasury departments for collection  efforts to recover  the taxpayer funds.

  • She also said that some  of the fraudsters are already serving  prison  sentences.

  • Some of the fraud schemes included fake businesses, false  payroll records,  identity theft, and other criminal efforts.


It never ends and  always includes just about every government entity, none of whom could control abusive spending and crimes.


4)Vice President JD Vance has been named as  the fraud guru whose purpose is to root out and prosecute the Medicaid fraudsters across the country and  across the government. He recently announced that  he is launching a program to crack down  on fraud in all fifty states and those states that fail to assist in that effort will lose Federal government funding.


This announcement came shortly after the Federal government blocked the payment of $1.3 billion because of 800 bogus hospice centers in  California: “We’re announcing that the federal government is deferring $1.3 billion in Medicaid reimbursements from the state of California. And the simple reason is because the state of California has not taken fraud very seriously. We want California to get serious about this fraud.” 


He also said that Hawaii and New York in addition to California are getting special attention  regarding the potentially high levels of fraud in those two states: “New York has had nine indictments over the last year — nine indictments, That’s a $100 billion Medicaid program just in New York.”


Dr. Mehmet Oz, the head  of Medicaid and Medicare has said that at least half  of the hospice centers in the Los Angeles area receiving Medicaid money are probably bogus. Apparently one third of all supposed hospice centers in the  country are located in the single city of Los Angeles, which makes  it  amazing that no one for years and years noticed this ridiculous and obvious fraud situation.


The fraud train  keeps running down the track: Minnesota, Hawaii,  New York, and every other state and government program.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



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Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:


Sunday, June 7, 2026

The Race To Bankruptcy Court: Fintechs Flee NYC, Immigrants More Important Than Citizens In New Jersey and the Bears Flee Chicago

 Let’s take a brief break  from  our run  of posts regarding the massive corruption  and fraud in government  programs and return to one of the hottest topics we have been covering over the past few years, coverage that has intensified recently: which major city or state government will get to bankruptcy court first? Our primary cities in the race to bankruptcy include New York City, Chicago, Los Angeles, San Francisco, and newcomer, Seattle. The state governments that we think are soon heading into bankruptcy include New York, New Jersey, Illinois, and California with Washington state a newcomer to the race.

The reason for returning to this topic in the midst of our corruption series is because there have  been some significant developments in the race to bankruptcy court. However, before reviewing the latest news and seeing which state or city is making the best progress towards government bankruptcy, let’s review how these cities and states got themselves into this financial death spiral position to begin with:


  • A government entity keeps expanding its budget, eventually putting pressure on the tax revenue stream it receives.

  • At some point, rather than cut government spending or make its programs more efficient financially, the politicians in charge raise taxes to meet the ever growing government expenditures.

  • The raising of taxes causes some residents and businesses to leave the city or state for less tax burdensome areas, reducing the tax base and reducing the revenue stream.

  • Rather than cut expenses and become more efficient to match the reduced tax revenue stream, politicians in the above cities or states raise the tax burden even more.

  • This causes more residents and businesses to flee the city or state, further reducing the tax base and tax revenue stream.

  • At some point politicians panic and raise taxes more and start cutting vital government services (e.g. police, fire, education) in order to try and balance government spending against the shrinking tax base and revenue stream.

  • The reduction in quality of government services in particular and quality of life in general drives more residents and businesses out of the area.

  • Eventually, the expenses, costs and financial liabilities outstrip the reduced tax stream and bankruptcy occurs.


Okay that’s the process, now lets check the progress some of the above listed government entities are making to achieve this bankruptcy goal against this process:


1)Let’s start off wit the recent bad news  out  of Mandani’s New  York City tax base:


  • Keep in mind that a lot of the  financial crowd on Wall Street have already moved some  or part of their operations out of New York  City to  more tax friendly areas: Goldman Sachs has  moved managers to Dallas,  Elliott Management relocated to  Florida and JP Morgan now has more employees based in Texas than in New York.

  • ARK  Invest and Webull are two hot, so-called fintech businesses that established themselves in  New York City.

  • Fintech companies are the latest thing in  high technology and financial applications  and  thus, they have  the potential  for high  salaries and high taxation.

  • But now two high visibility fintechs are leaving  New York City and heading for low tax St.  Petersburg, Florida.

  • Ironically, Webull was  located in the physical  center  of Wall Street,  right next to the New  York Stock exchange.

  • And  yet, the company is moving 1,000 miles away,  a bad omen for the financial  crowd in lower  Manhattan.

  • ARK was not a novice in the  world of high  finance, once managing over  $50 billion  in assets.

  • The fact that the top state income tax rate in New York City is  almost 15%  and the top state income tax rate in  Florida is 0%, those  making good money will be saving  a lot of money by working in  Florida.


Ore  proof that in our opinion  New York City continues to be the leader  in the race to bankruptcy  court.


2)New Jersey, as we pointed out in our last post ,continues to be a viable  candidate for bankruptcy court. They are losing their  tax base  because of their high levels of business taxation and regulation along with high individual tax burdens. 


And while the  following bit of  government  action does not involve a  lot of taxpayer money, at  some  point some New Jersey taxpayers are going to  get up  and leave the state  as they continue to see state politicians waste their tax money on trivial matters like  the following:


  • New Jersey’s newest governor,  Mikie Serrill, is going to  allocate a lot more taxpayer money to provide legal protections for illegal immigrants.

  • According to reporting from the Post Millennial, the governor recently announced that the amount of time to  provide free legal aid to illegal  immigrants will increase by more  than 100%, going from the current  level of $8.2 million to $20.2 million, a $12.2 million  increase.

  • She boasted that,"These actions will help ensure more people in New Jersey's communities receive due process under the law and more New Jersey attorneys are mobilized to stand up for the fundamental human rights of detainees and their families." 

  • There are about 14,000 homeless New Jersey residents but she felt that giving an  additional  $12.2 million of taxpayer money to help illegal immigrants was a better use of the money than helping  the state’s homeless.

  • New Jersey residents have the highest property taxes in the  country and she felt that giving an  additional $12.2 million of taxpayer money  to  help illegal  immigrants was a better of  the money vs. providing property tax relief.

  • New  Jersey residents have some of  the highest utility costs in the country and she felt  that giving an  additional $12.2 million  of taxpayer money to help illegal immigrants  was a better use of the money than providing utility cost relief.

  • New Jersey Congressman, Jeff Van Drew agreed:  "Families across New Jersey are wondering how they’re going to pay their electric bill this summer. Meanwhile, our Governor is increasing funding to spend $20.2 million to protect illegal immigrants. Start fighting for New Jersey citizens."


$20.2 million in a state government budget of $60 billion is not very large. But the symbolism is huge: New Jersey taxpayers are some of the most heavily taxed people in the country and when they constantly see their  tax dollars being  spent on  non-citizens like this or on  other trivial efforts and programs, at some point they realize they are not  getting value for their tax dollars and eventually leave, further weakening the  state government tax base. 


And yet, politicians like Sherrill just do not get it. 


3)We always felt that Chicago was a great candidate to  go bankrupt. In fact, in a previous  post we  discussed the results of an analysis by city actuaries that predict the city will go bankrupt between 7 and 12 years from now, given, among  other  things, massive  unfunded pension liabilities.


However, before then we have documented that businesses and residents are already fleeing the city due to high tax burdens, high crime rates, and lowering quality of life. And  the city is about to  lose one  of its most enduring symbols and  residents:


  • The Chicago Bears  of the National Football League have decided that they also will flee  the city due to  high taxes and  other reasons.

  • After a century of  being a Chicago business  presence, they will move their operations and  football games  to a  planned new stadium in  Indiana.

  • Thus,  they are not only leaving the city they are leaving the state, another one of our prime candidates  to go bankrupt.

  • The official word from  the  Bears: Yesterday, the Chicago Bears Board of Directors met and voted to advance our stadium development project in Hammond, Indiana, with the exact site to be selected. We believe a world-class stadium project in Hammond will transform the region, connecting Northwest Indiana to the South Side of Chicago through the Loop and across neighborhoods and suburbs stretching north of the city. It will bring Chicagoland together and deliver new opportunities to its residents and businesses.”


So, as if the city did not have enough headaches with the out-migration of residents and businesses, Chicago suffers the embarrassment of losing an NFL team, one that had been a major fabric of city life for 100 years or so, taking  its  tax payments and economic  contributions  with it.


Another day and another day of racing to bankruptcy court: New York, New Jersey, and Chicago, the bad news  and dwindling tax base continues across all of them.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at: