California finally cracking down on fraud

Holy crap! California fraud is even bigger than Nick Shirley thought. Even the people that were supposed to be
feeding the Homeless are in on it.


California Homeless Aid Fraud: Major Federal Crackdown
Federal authorities have announced a multi‑million‑dollar crackdown on alleged fraud in California’s homelessness services sector, targeting Los Angeles‑area nonprofits and their contractors

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Key Arrests and Charges
On September 16, 2026, FBI and DOJ agents arrested three major figures in a coordinated sweep:

Michael Young, 46 – Founder of Culver City nonprofit Home At Last.
Allegedly misappropriated over $7.5 million in taxpayer funds from LAHSA and other agencies, using shell companies and fraudulent billing to divert money into commercial real estate, a bingo hall, a high‑end restaurant/nightclub (Six Seven Five Lounge in Inglewood), private vacations, and luxury car restorations

California Auditor Exposes $76B+ Fraud and Waste Under Newsom.

A recent report from California’s nonpartisan State Auditor, released in December 2025, has placed eight state agencies on a “high-risk” list due to vulnerabilities to waste, fraud, abuse, and mismanagement. This designation, which has doubled under Governor Gavin Newsom’s administration, highlights ongoing issues across programs like unemployment insurance (via the Employment Development Department), food assistance (CalFresh through the Department of Social Services), and financial reporting by the Department of Finance. The auditor warned that if improper payments in CalFresh are not reduced, the state could face an additional $2.5 billion annual cost to maintain federal benefits under new laws. Critics, including Rep. Kevin Kiley (R-CA), have pointed to these findings as evidence of systemic problems, with Kiley calling California the “fraud capital of America” and citing examples like estimated $32 billion in unemployment fraud during the pandemic.

A new investigation alleges that California may have lost between $180 billion and $280 billion to fraudulent claims in state-administered welfare programs during Governor Gavin Newsom’s tenure. The claims center on alleged widespread fraud in Medi-Cal, the state’s Medicaid program, and other social safety net programs.

GOOD LORD. Is EVERYONE in California committing fraud? I guess they just need to keep raising taxes
on the honest people to pay for it all.

It's OK, most are Democrats. They are OK with raising taxes to expand fraud.

Imagine that...fraud in California 🤔