Californians are discovering that fraud is not a bug, but a feature

Californians are becoming aware of just how rampant fraud is in the state. 

After federal authorities arrested multiple people in Southern California this week for health care fraud, the top federal prosecutor in LA quipped that there might never be enough prosecutors to handle every case.

The public’s eyes have been opened.

Just as I uncovered widespread, massive fraud in Minnesota, so too are we finding out the extent to which alleged fraudsters have been systematically fleecing the Golden State.

The rot in California is so deep, one could spend a lifetime investigatin

I was able to find what I believe is $170 million worth of fraud in just a few days while I investigated what was happening in LA.

The California Post Editorial Board called it “California schemin’” — and rightfully so.

These alleged fraudsters have figured out that a medical beneficiary number in California is more valuable than, say, stealing someone’s credit card. 

A medical beneficiary number is what these sham companies allegedly use to commit fraud by saying that somebody needs their services for hospice or home health. They then bill Medicare or Medi-Cal (the state’s version of Medicaid) for that money.

In a related case, a California couple was also arrested for allegedly billing more than $7 million through a fake hospice business, where the nonexistent “patients” had oddly high survival rates.

It’s a miracle! The hospice patients survived! (The only problem was, many of the patients didn’t exist.)

In some cases, including many that are likely still unknown, no services may have been provided to any patients.

Since I targeted hospice fraud in Southern California, authorities have now shut down over 100 hospices, and at least eight of these numerous alleged fraudsters (including doctors, nurses and even a psychologist) have finally been charged.

However, these schemes are likely just the tip of the iceberg.

Something super interesting is that if you look at the Medi-Cal budget in California from 2022 to 2026, it has gone up by more than $100 billion, while enrollments have only gone up by 100,000 people. In 2022, the enrollment was 13.9 million, while in 2026 it is 14 million.

That number suggests just how bad the fraud may be.

Try though they might, state leaders can’t plead ignorance. They see the cold, hard budget numbers. 

To say that California Gov. Gavin Newsom was not aware of this fraud, and the waste of billions of taxpayer dollars, is simply not credible.

https://nypost.com/2026/04/05/opinion/californians-are-discovering-that-fraud-is-not-a-bug-but-a-feature/

By 

Nick Shirley

Published April 5, 2026, 11:26 a.m. PT