We are continuing our discussion time 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 start today’s corruption train in Brooklyn:
A Brooklyn adult daycare owner recently admitted she had defrauded the Medicaid program over a seven year period of $64 million.
Zakia Khan was recently sentenced to 76 months in prison and to pay back over $61 million.
The defrauding went on from 2017 to 2024 and no one in the government noticed.
She pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States.
She submitted claims to Medicaid for services that were never done.
Think about it: $64 million in billing over seven years comes out to over $176,000 a week on average being falsely billed. And for seven years nobody noticed this ridiculous amount of billing for services that, it turns out, were never provided. Government incompetence at its best.
2)A House of Representatives panel has asked the Vice President's anti-fraud task force to investigate the fraud situation that has flourished in Minnesota:
Specifically, they want the task force to investigate whether whistleblowers on the fraud were retaliated against by the administration of Governor Tim Walz.
The committee recently published a report, “The Cost Of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion."
The report contained whistleblower testimony and government documents showing that Minnesota government officials continued paying taxpayer dollars into fraud schemes despite being told about the fraud activities.
The report also alleges that Walz and Ellison knew of the defrauding all the way back in 2019 and did nothing to stop it.
Nine whistleblowers were interviewed for the House report: “Whistleblowers within DHS [state Department of Human Services] have alleged that Governor Walz not only knew about this fraud, but that he retaliated against whistleblowers, ‘spen[ding] millions on surveilling staff and hiring private investigator (sic) or law firms to silence staff, Then Temporary [DHS] Commissioner Shireen Gandhi confirmed in her testimony that DHS used outside entities to investigate DHS staff.”
Also, the report asserted that Walz and others "prioritized managing political and media fallout over addressing known fraud vulnerabilities.”
The report estimated Minnesota fraudsters stole $300 million in child nutrition funds and as much as $9 billion in Medicaid fraud schemes.
Also: “The state’s consistent failure to act decisively in the face of known fraud allowed brazen criminal schemes to flourish and diverted resources away from the vulnerable populations these programs were intended to serve.”
Walz and Elliosn testified that they somehow knew nothing about the fraud that was going on under their noses despite multiple whistleblowers telling them.
Instead, the report claims that Walz and his cohorts retaliated against anyone who raised concerns about the massive fraud going on using intimidation, diminishing job duties. and threats of surveillance
Not sure what is worse: regular criminals exploiting government incompetence or government officials that refuse to stop the fraud and go after those that are properly and honestly reporting it. Walz and Ellison should know better …. unless they were financially or politically benefiting from the fraud.
3)But as we have often said in this series, Medicaid, Covid and Medicare are not the only government programs losing taxpayer wealth via fraud:
A recent report from the Inspector General of the Department of Education found that in just the past five years there have been at least 130 fraud schemes that ripped off education funds intended to educate our kids.
Just these identified fraud cases stole almost $71 million of taxpayer dollars.
The investigations resulted in 98 criminal and civil cases, 74 suspensions, and 13 "administrative actions.”
According to the report: “Individuals who commit K–12 fraud frequently operate within the school system itself. These perpetrators have included State Superintendents of Education, charter school leaders, district superintendents and other high-ranking school officials, and school employees at all levels, as well as school vendors.”
A lot of the stolen funds were supposed to go to kids that needed the most education help: special education students, vocation students, and school districts serving low income families.
Some of the fraud schemes included inflated student enrollment numbers, ghost students, fake invoices, bribery and kickback schemes on contracts, and criminal conflicts of interest.
Unbelievable that the people we trust to educate and care for our kids are some of the very people ripping off the educational government programs and related taxpayer wealth. Especially distressing, is a lot of this fraud denied financial resources to the kids that needed it the most. Disgusting.
4)This is our 17th post dedicated to the massive fraud occurring in government programs. The amount of stolen taxpayer wealth and goodwill is mindboggling. But at least the Trump administration, especially Vice president J.D. Vance's anti-fraud effort, is producing some good results:
Vance recently announced that about 870,000 people have been identified as potential fraudsters and will be forever blocked from getting any Federal government program money in the future.
Specifically: "We are going to suspend 870,000 people permanently. People who defrauded the government over the last couple of years, last couple of decades. We're going to make it impossible for them to get loans from the Federal government. If you screwed the American taxpayer, the federal government is now going to say you're cut off, no more. You shouldn't be applying anymore. And if you do apply, you're no longer able to get those benefits."
As an example of his group’s effort, the recent “Heartland Fraud Surge” that ran from June through September, and targeted the Covid era and program fraud, resulted in criminal charges against 160 people..
These alleged fraudsters have now been identified and the U.S. Treasury has been tasked with recovering upwards of $22 billion.
An example of the task force’s efforts resulted in Jamie Gray in Missouri being charged with allegedly money laundering almost $56 million of taxpayer money.
A good start, hopefully the momentum and focus on preventing and recovering taxpayer wealth will continue unabated until the government bureaucracy figures a way to safeguard taxpayer wealth in the first place.
That will do it for today: Medicaid fraud in Brooklyn, all kinds of fraud in Minnesota, education fraud everywhere and finally some serious attention to cleaning up the mess.
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https://www.change.org/p/deseat-congress-reset-freedom
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