Monday, April 20, 2026

Government Fraud Update, Part 1: Obama Care Fraud In Florida, Medicaid Fraud In California, and Massive Hospice Fraud In Los Angeles

 For the  last several weeks we have focused on two themes in  our posts. The first theme was  good old political class insanity and how the politicians in this country always make things worse and we pay for their  ineptness in so many ways. The second theme was a continual review of which major city or state government will get to bankruptcy court first given that our top candidates are already in  financial death spirals.

We are going to step back from these themes for a while and embark on what is going to be a long list of instances of government and criminal and fraud  corruption. Every level of government these days seems to have government programs that are infested with criminal actions that steal hard earned taxpayer dollars for themselves, depriving needy Americans of the resources they need to overcome the problems they face everyday.

There will be no special or organized order as we explore the multitude of capers and  criminal actions against government programs. The only thing we can say now is that the almost daily uncovering of new fraud cases and investigations will be disgusting and long.

Before going any further, let’s give credit to Nick Shirley, a 23 year old independent journalist who uncovered billions of dollars worth of government fraud in  Minnesota before moving on to California where he has been uncovering similar government corruption and criminal fraud in that state. It seems that his efforts were the catalyst that started an avalanche of criminal  schemes stealing taxpayer dollars becoming public knowledge.

1)Vice President, J.D. Vance has been named as the  leader of a Federal  government level  task force to go after those that are ripping off Federal  government programs. An early success of this effort is out in California where a whopping 447 hospices and 23 home health care agencies just in Los Angeles have been suspended and cut off from Federal government subsidies. It is expected that these bogus health care providers embezzled $600 million of taxpayer fraud.

That is the good news: multiple criminal operations in  Los Angeles will be put out of the business of stealing taxpayer wealth. The bad news is twofold:

  • First,  all of this fraud was just in a single metro California area, Los Angeles. Imagine how many billions of dollars are being stolen in other areas of the state that have not been shut down yet.

  • Second, the politicians in  California, the same  people that allowed billions of dollars to be stolen over the years, now are considering passing legislation that would make investigative efforts like Nick Shirley illegal.  

  • Rather than focus on the real criminals stealing taxpayer wealth, these idiots are going after the person uncovering the corruption,  something that the politicians should have been doing for years.

You cannot make this stuff up. Billions of dollars being stolen right under the  noses of those in elected office that should be preventing the theft. But they would rather go after those identifying the theft than fix what they have  broken.

2)Okay, a good start, $600 million. But the Vance anti-fraud task force is working hard in other areas of the country:

  • Before going further, consider a nice summary of the fraud from the Daily Caller website: “The fact that these taxpayer dollars went out without verifying if the contractors and vendors were even real or lawful businesses is a disgrace and yet another example of how the previous administration flouted basic anti-fraud guardrails.”

  • In light of this summary,  consider the reality that the Vance task force recently discovered a scheme that apparently cost the American taxpayer $6.3 BILLION.

  • This taxpayer wealth was distributed to potentially fraudulent businesses under government contracts.

  • The numbers are staggering: the $6.3  billion went out under 895 different government contracts to 392 businesses, many of whom did not even exist.

  • Vance has given these possibly non-existent companies 30 days to prove they exist and are operating within the framework of the contracts.

  • Those that cannot prove they are viable and doing the work they are supposed to be  doing will have the Federal government go after the individuals responsible for the fraud and try to claw back the taxpayer dollars they stole.


Yes, the $6.3 billion number is just a number but consider this: there are about 770,000 homeless Americans living on the streets. If that $6.3 billion had been spent on feeding those homeless Americans rather than being stolen by criminals as a result of government incompetence, then every one of those 770,000 homeless folks could have received three meals a day for about two and a half years. That is the human side of the $6.3 billion.


3)Let’s go  back out to  California, a state that I think will be a prime area for government fraud, a get a more in-depth  look at the LA hospice fraud discussed above:


  • Apparently, a recent report from the state auditor for the California state government found that there was a massive hospice fraud in the state.

  • This audit led to  21 people being charged with stealing $267 million via bogus hospice operations.

  • The sad part of this episode of government fraud is that the governor, Gaavin Newsom, was warned this type of criminal  activity was going on back in 2022 and apparently he did nothing for the succeeding four years to stop it.

  • It was pretty obvious what was going on since the number of hospice operations went from 109 in 2010 in LA County to 1,841 today, a 17 fold increase, nowhere close to the growth in  population during that time period.

  • In 2022, the state auditor reported that supposed hospice operations were clustering geographically in impossible concentrations, patients were being discharged despite supposedly  being in hospice, end of life care, and ridiculous high and obnoxious billing patterns.

  • Criminal  enterprises bought stolen identities, enrolled these stolen identities in bogus hospice operations and then billed California’s Medicaid operation for the fake hospice care.

  • This  operation eventually cost the state Medicaid operation $267 million but only $30 million has been  recovered.

  • But it was pretty oblivious to anyone who cared, and obviously the state governor and state politicians did not care, since LA county alone had more hospice operations than 36 other states COMBINED and in one four block stretch of Los Angeles, Federal officials counted 42 supposed hospice operations.

  • And  it was not just the sheer amount of fake hospice operations that were bleeding the state of taxpayer wealth, the  average annual  billing for these fake patients in hospice was $29,000 per patient per year, more than the national  average of $13,200.

  • More travesties: 18% of ALL Medicare hospice and home care billing amounts in the entire country goes through the  mostly fake hospice operations just in  LA County,  18% of the whole country.

  • California politicians and government operations allowed this type of obvious fraud to go forth for years and years.

  • And yet, the state’s attorney general wants us to ignore the obvious and widespread fraud and blame, who else, and Trump and politics: "There are those in this federal administration who can only see things through a political lens and want to politically weaponize this."


Given the lack of aggressiveness by Newsom, his attorney general and the political class in  California  to attack the fraud problems, in the face obvious face disgusting above fraud numbers, they are either too stupid to see what is going on or somehow benefit from the fraud that is allowing billions of American taxpayer dollars to flush down the toilet. Stupid or benefitting from the fraud, you decide.


4)The Justice Department is finally getting involved and doing in-depth investigations on criminals defrauding the American taxpayer:


  • According to the current acting attorney, Todd Blanche, the Department of Justice is currently looking into more than 8,000 potential fraud schemes.

  • These 8,000 potential  fraud cases could be costing the American taxpayer over a trillion dollars a year.

  • One example of these 8,000 cases  involved a Florida insurance brokerage  company that admitted to defrauding Obama Care of $160 million.

  • Another example involved a California man who is accused of stealing $270 million in false Medicaid claims as related to prescription drugs.

  • The Justice Department is creating a National Fraud Enforcement Division to efficiently go after fraudsters.


Okay, a good start down the trillion  dollar fraud avenue, let’s hope this finally shuts down the Federal  government fraud heritage.


We are just getting started. Unfortunately, we will be on this topic for a while, that is  how much fraud that needs to finally be  cleaned up and stopped.


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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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