Showing posts with label small business administration. Show all posts
Showing posts with label small business administration. Show all posts

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:


Thursday, October 23, 2025

October, 2025, Part 5, Political Class Insanity: More Minimum Wage Stupidity In California, Corruption At The Small Business Administration, Jacksonville Gets it Right and More

  There is a lot going on in the world: Obama and Russiagate findings, Middle East powder keg, the Russian/Ukrainian war, Federal government shutdown, etc. But through all this, the American political class continues to constantly deliver its own special brand of insanity, stupidity, wasteful taxpayer spending, and ineffective government programs.

1)We have often  discussed the  reality that when a state radically raises its minimum wage law there are fewer workers getting fewer benefits who are working fewer hours as companies try to cope with significant increases in their salary budget. The  latest research proves that this economic reality still  exists and that it continues to negatively affect California workers:

  • A new analysis by the National Bureau of Economic Research (NBER) found that the latest round of minimum age increases in California had severe negative effects on the state’s fast food workers.

  • The new $20 minimum wage level reduced employment opportunities and reduced hours for those workers who still  had  jobs in the fast food industry.

  • Despite California politicians loving their legislation, the NBER found that the law directly reduced jobs in the fast food industry by 3.2%.

  • This 3.2% reduction is the equivalent of a whopping 18,000 jobs.

  • The Employee Policies Institute found in their analysis that on average fast food workers that continued to have a job lost 250 working hours a year.

  • These 250 lost hours average out to about $4,000 lost in  salary a year or seven weeks  of full  time pay,

  • To  cope with the increase in salary budget, businesses have had  to raise prices  of their fast food products with the Burger King Whopper meal, for instance, now being 12% more expensive than  it was prior to the new higher minimum wage law.

So, as always, the good news is that your fast food position pays you $20 an  hour. The bad news is either 1) you no longer have a job or 2) your higher hourly wage will be  offset by fewer working hours. Political class economic insanity strikes again and as always, everyone loses: workers, businesses, and consumers.

2)Another undercover effort by James O’Keefe has uncovered yet another scandal regarding the misuse and corruption of government spending:

  • The Small Business Administration operates a program  designated as 8(a).

  • The program  is  supposed to provide taxpayer funds to so-called “disadvantaged” businesses, i.e. minority owned businesses.

  • However, the fraud and  corruption occurred when criminals set up bogus "disadvantaged businesses,” collected no  bid taxpayer funds, and used the bogus businesses to channel that money to non-minority sub contractors.

  • The  amount of money in the program that may have been criminally channeled to fake interests could be as high as $183 million.

  • A hidden camera video recording by O’Keefe of Melayne  Cromwell,  a contract manager for ATI Government Solutions, laid out how the scam often worked.

  • She operates a disadvantaged company that is Native American owned which allows her to get no-bid government  contracts:  “Because we’re Native American-owned, we’re heavily favored for government contracts, There’s no bidding war.”

  • The process apparently works as follows: a  company such as ATI gets a  no-bid contract from  the Federal government and taxpayers and then simply passes that money through to another non-minority company that does all  of the work.

  •  That pass through  company does not have to be a  disadvantaged  company and in  reality, may not  be  the  best choice to do the work, assuming any work is done at all.

  • Specifically, according to Cromwell: “So, a lot of our subcontractors bid on contracts that were perfect in their industry, but because they weren’t Native American, they wouldn’t win it. So we bid on it for them, they become our sub, and it’s an automatic win because you’re Native American status.  I tell you, pass-throughs are a great thing!” 

  • In fact, during the secret video interview,  Cromwell admitted that the ATI minority owned business was actually created by two Caucasian gentlemen, Firmadge Crutchfield and Scott Deutschman.

Yet another interesting approach to defrauding the American taxpayer. The hidden video can  be seen at the following link:

https://thepatriotchronicles.com/news-for-you/watch-undercover-video-exposes-massive-federal-contracting-fraud/#google_vignette

3)We have often discussed two races:

  • Which state government will collapse financially and be the first state to go into bankruptcy?

  • Which  major city will be the next major city to collapse financially and be the next major city to go into bankruptcy?

Our main candidates to be the first state to go bankrupt include Illinois, New York, California, and New Jersey. Our main candidates to be the  next major city to go bankrupt include Chicago, New York City,  Los Angeles, and San Francisco.

The financial death spiral mechanics  for these states and  cities are pretty simple:

  • State and city politicians continue to raise taxes  and increase business regulations without materially improving the quality of life of their citizens.

  • This causes residents and businesses to leave for other cities and states that have  lower taxation and lower business regulation burdens.

  • This  creates a tax revenue shortfall in the states and cities they left.

  • Rather than get more efficient and  cut government  spending, the  politicians raise taxes to cover the tax revenue shortfall.

  • This  causes more residents and businesses to leave and the death spiral is in place and the trip to bankruptcy court is in  play.

But some politicians understand  this basic economic principle and are reaping the benefits of lower taxation and less business regulations.  Jacksonville, Florida is the perfect example of less is good:

  • By reducing taxes, Jacksonville is now the leader in corporate and business relocations, gaining businesses and  residents who are fleeing high taxation and regulatory environments.

  • The city has seen a 67% growth in corporate relocations from  2022 to 2023.

  • More than 150 corporate, regional,  and  divisional headquarters are now operating in the Jacksonville area.

  • For example, Intercontinental Exchange announced a $173 million headquarters expansion in Jacksonville for its Mortgage Technology division, Paysafe moved its  North American headquarters to the city, Dun & Bradstreet relocated from New Jersey as  did  American Roll-On-Roll Of Carrier, and Shoe Manufacturing.

  • Unlike the bankrupt bound politicians, Jacksonville politicians restructured and reduced its pension debt by $1 billion and negotiated a $400 million reduction in  its long term debt, all of which allowed the city politicians to actually cut the tax burden for local residents and businesses.

  • This in turn led to more than a dozen major construction projects either recently completed or currently underway, creating good paying construction jobs.

  • The city unemployment rate is 3.5%,  significantly less  than  the  national average of 4.3% and much  less than the  cities and states  heading for bankruptcy.

  • Jacksonville was the tenth best city for population growth in  2024.

Lower taxes, lower business regulation, leads to population growth, high paying jobs, and a better quality of life. Is not that hard to understand. But it is a concept lost on politicians in Chicago, New York City and other cities and states.

4)One more quick  hit for today:

  • Smartmatic is an international election technology company.

  • Its technology helps manage elections  around the world including in the U.S.

  • A Miami Federal grand jury recently  indicted the company and some  of  its senior executives and accused them of  being involved in bribery and money laundering operations across different  countries  and foreign election contracts.

  • The indictment claims that the company and its  executives bribed  Philippines' top  election  officials to secure  contracts after that country’s  2016 national  elections.

  • According to U.S.  attorney  Jason A. Reding Quinones: “These defendants allegedly engaged in a sophisticated global bribery and laundering scheme designed to manipulate the public contracting process and enrich themselves at the expense of public integrity.”

  • Given that Smartatic has been involved in U.S.elections, it makes you wonder about the 2020 election integrity doesn’t it?

Enough political class  insanity for today: an election management company is accused of criminal  activity, Jacksonville shows how it is done from a productive government perspective, criminal fraud at the Small Business Administration,  and the economic stupidity continues in California.

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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: