Tag: fraud

Southern Poverty Law Center Pleads Not Guilty To Federal Fraud Charges

The Southern Poverty Law Center (SPLC) on July 7 entered not guilty pleas again to 11 criminal counts alleging it defrauded donors by sending millions of dollars to informants who infiltrated white supremacist and so-called hate groups that it publicly opposed.

The fresh arraignment of the nonprofit organization under a new superseding indictment took place via videoconference before Montgomery, Alabama-based U.S. Magistrate Judge Kelly F. Pate.

The charges, announced on April 21 by FBI Director Kash Patel and acting U.S. Attorney General Todd Blanche, sparked political backlash amid growing questions about the group, which the federal government had previously used to track extremist groups with its “Hate Map” and other online resources.

The original indictment by a federal grand jury charged the SPLC with wire fraud, making false statements to a federally insured bank, and conspiracy to commit money laundering.

The group was alleged to have surreptitiously transferred more than $3 million in donated funds to leaders and organizers of racist groups, including the Ku Klux Klan, the Aryan Nation, and the National Alliance, between 2014 and 2023.

The government said the SPLC sent donations to bank accounts of fake entities that had names such as “Rare Books Warehouse” and “Tech Writers Group.” The accounts were then used to funnel money to alleged informants in the racist groups that it claimed to strongly oppose.

One of the informants allegedly helped to organize the “Unite the Right” protest in 2017 in Charlottesville, Virginia, that turned deadly.

SPLC interim president and CEO Bryan Fair appeared in person on May 7 to plead not guilty to the same charges on behalf of the group.

On July 7, an attorney for the organization appeared by videoconference to enter 11 not guilty pleas to the superseding indictment issued last month that added more details and specifics. The new charging document did not add new charges.

The original indictment alleged $3 million in donor funds was funneled to individuals associated with extremist groups, but the new indictment increases the figure to $4.1 million.

The new indictment provides additional details such as a claim that funds were used by recipients for buying materials for cross burnings and Ku Klux Klan robes and hoods.

The SPLC has filed a motion to dismiss the indictment for vindictive prosecution. The group claims it is being targeted by the Trump administration for political reasons. It is unclear when the court will rule on the motion.

The SPLC is known for its successful fundraising campaigns. According to its most recent publicly available IRS filing, it had gross receipts in tax year 2023 of $339.3 million and assets of $822.2 million.

The FBI severed its relationship with the SPLC in October 2025 after conservatives criticized the group for including slain conservative activist Charlie Kirk’s organization on its list of hate groups. The FBI had previously used SPLC intelligence on domestic extremist groups.

Patel said the organization has turned into a “partisan smear machine” instead of a civil rights advocate.

“Their so-called ‘hate map’ has been used to defame mainstream Americans and even inspired violence,” he said at the time, without elaborating.

The SPLC’s Hate Map lists almost 1,400 groups, including Kirk’s Turning Point USA, categorizing it as an “antigovernment” group.

Critics have long said the Montgomery-based SPLC unfairly labels conservatives as racist as a matter of policy, treats opposition to illegal or legal immigration, open borders, and multiculturalism as hate, and political expression of those views as hate speech.

The Alliance Defending Freedom, a legal organization that defends religious freedom and free speech, says the SPLC “did good work decades ago fighting segregation in the South,” but has since it has become a “far-left activist organization that attacks anyone who disagrees with its narrow political agenda.” Targets have included conservative, libertarian, anti-tax, immigration reductionist, and other groups.

In a statement issued in May, the SPLC called the charges against them “provably wrong” and “based on inaccurate facts and a misapplication of law.” The nonprofit said its informant program has been successful at preventing threats and attacks, stopping criminal activity, and gathering information used to dismantle hate groups.

“There is no question that the information the SPLC shared with law enforcement saved lives,” the statement reads.

It also stated that it was no stranger to legal threats and would continue its mission “no matter what.”

The Epoch Times reached out to the SPLC for comment. No reply was received by publication time.

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Ken Paxton Vowed to Crack Down on “Illegal Voting.” He May Have Violated Texas Election Law.

Two weeks before this year’s primary elections, Texas Attorney General Ken Paxton announced the creation of a tip line for the public to report people or groups suspected of voter fraud.

“Free and fair elections are a cornerstone of a thriving republic, and with the authority granted to my office by the Legislature, we will stop at nothing to uncover and stop any illegal voting activity,” Paxton said in a February news release announcing the tip line.

The announcement linked to guidance from his office about election laws in Texas, which included a requirement to be a U.S. citizen, a prohibition on collecting mail ballots on behalf of others and a warning that “it is illegal to misrepresent your residence on election records or to establish a residence for the purpose of influencing the outcome of an election.”

“You must register to vote using the address where you reside,” the attorney general’s guidance stated.

Despite his own warnings, Paxton appears to have used an address where he did not live while voting in six elections in the past two years, including in May’s runoff that made him the Republican nominee for U.S. senator, according to records obtained by ProPublica and The Texas Tribune.

State Sen. Angela Paxton said in a 2025 divorce filing that Paxton, whom she accused of adultery, moved out of their Collin County home a year earlier. But Paxton continues to list the home’s address in the northern Dallas suburb on his voter registration. Angela Paxton declined to be interviewed. A source close to the Paxtons said the attorney general has not moved back into the home since leaving.

It is unclear where Paxton has lived for the past two years, but reporting by ProPublica and the Tribune has linked him to a home in neighboring Denton County since February.

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Big Tab: OMB says fraud losses ‘in the hundreds of billions’ annually

The Biden administration called the government’s only estimate of annual fraud losses “not plausible.” Now, the Trump administration says fraud costs taxpayers hundreds of billions annually.

The U.S. Government Accountability Office estimated in April 2024 that the federal government loses between $233 billion and $521 billion annually to fraud. It was the first and only government-wide estimate of its kind, representing 3% to 7% of average federal obligations.

The estimated losses work out to between $1,431 and $3,200 for each of the nation’s estimated 162.8 million individual income tax filers, according to IRS data.

The wide range reflects different risks over the five-year period the estimate covers. GAO used a Monte Carlo simulation to account for uncertainty in fraud data, including fraud that goes undetected, noting that higher-risk environments such as pandemic-era spending are associated with estimates at the upper end of the range.

The Biden administration rejected the estimate. Jason Miller, then the deputy director for management at the Office of Management and Budget, said in April 2024 that the estimate was “not plausible” and would “create confusion and promote misleading generalizations that have no factual connection to specific federal programs.”

The Trump administration has taken a different view. An OMB spokesman told The Center Square that while “it’s hard to know the exact figure, annual losses to fraud have been enormous, certainly numbering in the hundreds of billions.”

But none of GAO’s three recommendations has been fully implemented. As of March 2026, OMB had no update on two recommendations aimed at improving fraud-related data collection. A third recommendation, directed at the Treasury Department, also remains open.

Rebecca Shea, director of GAO’s forensic audits and investigative service, told The Center Square that the agency has no plans to update the spending-side estimate, in part because GAO recommended Treasury develop an approach for doing so going forward.

She also said the Department of Government Efficiency’s claimed savings of $215 billion, tracked on the agency’s public savings log known as the wall of receipts, and GAO’s fraud estimate are not measuring the same thing.

“From what is available on the wall of receipts, their savings estimates are based on a wider range of activities than fraud,” Shea said. “For example, DOGE’s website also notes savings from asset sales, contract and lease cancellations and renegotiations, grant cancellations, interest savings, programmatic changes, regulatory savings and workforce reduction.”

David Walker, former U.S. comptroller general and chairman of the Federal Fiscal Sustainability Foundation, a nonprofit focused on limiting federal spending and debt, echoed that assessment.

“DOGE tried to do work to deal with that, but they didn’t do what needs to be done,” Walker told The Center Square. “They didn’t do it the right way, and they grossly overstated how much money they quote unquote saved.”

Walker said that contract and grant cancellations do not automatically translate to savings.

“Just because you cancel a contract or a grant doesn’t mean you’ve saved the money, because only Congress can cut spending,” he said.

Daniel Kowalski, a former Trump administration OMB official and director of the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, was more blunt.

“DOGE was not focused on fraud as much as it was focused on efficiency,” he told The Center Square. “It was the Department of Government Efficiency and not the Department of Fraud Elimination. I don’t think there’s a way to map DOGE onto the GAO fraud report.”

Kowalski said the GAO estimate is credible.

“It’s the best number available,” he said. “I would not be surprised if the fraud number was closer to the high end of the GAO estimate – 7% of program costs or $500 billion-plus a year.”

Walker said two root causes drive the problem.

“We have inadequate internal controls before the money goes out, because once the money goes out, you’re probably not going to get it back,” he said.

Walker singled out self-certification as a particular vulnerability.

“Fraudsters have no problem saying that they’re qualified for something, even though they know they’re not,” he said. “You shouldn’t be able to self-certify. That’s ridiculous.”

Kowalski said organized crime has moved aggressively to exploit those weaknesses.

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Waste Of The Day: Stolen Education Grants

Topline: A North Dakota woman was convicted last month of five counts of theft for stealing $131,000 in state grants meant for after-school programs.

Key facts: Faith Dixon, 47, was one of the top recipients of $2 million that the North Dakota Department of Public Instruction awarded in October 2021 for its Out of School Time program to support children impacted by school closures during the Covid-19 pandemic.

Her nonprofit, Faith4Hope, instead sent the funds to her then-husband’s food stand, her brother’s music and production company and her sister-in-law’s dance studio, according to court documents reviewed by InForum.

Dixon’s lawyers claimed she disbursed the money in “good faith” to help children, despite the conflicts of interest. But assistant attorney general Jeremy Ensrud showed some of the funds were spent on Dixon’s own “day-to-day living expenses.”

Dixon’s ex-husband pleaded guilty to theft last year. He admitted the grants to his food stand were not spent on providing culinary classes to children, as he promised the state.

Dixon’s other family members truly did spend their grants on helping children, Ensrud told InForum.

Last October, Dixon took a plea deal that would have sent her to prison for only 4 to 11 months, but she backed out because she had received “bad legal advice.” Now, she will serve 4 to 10 years.

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The Elephant In The Room That Is Fraud

There has clearly been trillions of fraud over the last several decades, and politicians in both parties have shown very little interest in rooting out the fraud until Trump. Somehow, most of the media and other Democrats aren’t too concerned with saving taxpayer dollars—they spend their time attacking Trump.

The media and other Democrats were outraged when Trump spent $16 million dollars fixing the reflecting pool problems, and there was endless reporting, but there is virtually no outrage and minimal reporting on the endless fraud, no matter how many billions have been legitimately stolen from the taxpayers.

The following is a small sample of what crooks have gotten away with, which is only the tip of the iceberg.

Federal data revealed this:

In 2024, 35 percent of exchange enrollees and 40 percent of fully-subsidized low-income enrollees generated no medical claims….

Tens of billions went to big insurance companies to pay for many fake people. Yet, as Democrats shuttered the government, almost all the media spewed were intentional lies about how Republicans wanted to take health care away from the poor, and premiums would rise substantially for them.

The media didn’t have much interest when an enterprising young reporter found massive fraud in daycare centers in Minnesota. They also didn’t have any concern when we learned Governor Walz and Attorney General Keith Ellison knew about the fraud for a long time and instead of going after the criminals, sought to destroy the whistleblowers.

Here is how PBS reported on the story:

This week, the Trump administration dispatched federal officers to Minnesota amid concerns over fraud. The deployment comes after a right-wing influencer posted a video claiming, without proof, that daycare centers operated by Somali residents in Minneapolis had misappropriated more than $100 million.

Hospice fraud in California is massive. Where is the endless reporting by the media? Why aren’t they concerned that Governor Newsom and other officials did little to nothing about it? They also don’t seem interested in how many millions of taxpayer dollars flow to entities associated with Newsom’s wife. Instead, they attack the Justice Department for investigating the obvious.

A huge amount of fraud was found with a small sample of SNAP recipients, yet this news piece seems aggravated at the Trump administration for doing something about it:

The USDA says 700,000 were removed from SNAP. Here’s what counts as fraud.

Multiple studies have found that SNAP fraud is rare, yet the Trump administration continues to place heavy focus on the issue.

In May, Rollins told Fox News that her department had found around 700,000 people fraudulently using SNAP rolls since February 2025 and arrested 895 people in the past year for fraud. She said 244,000 fraudsters used dead people’s social security numbers and 500,000 collected benefits in multiple states.

Here is a story that got little coverage about health care fraud schemes. You would think that with all the worries about Medicare survival that an arrest of around 450 people in 45 states would get extensive coverage, but it doesn’t.

New: Record Healthcare Fraud Bust: 450 Defendants Now Charged by Trump DOJ

How often is this happening throughout the country?

What about this?

Michigan childcare provider collected $1.1M in taxpayer funds despite no visible signs of operating

Where are the administrators we pay for verifying that daycare providers do in fact qualify for the money?

The media clearly has little interest in reporting on fraud perpetrated by illegals:

Illegal Alien Gets 8 Years in Prison for $89 Million Payroll Scheme Employing Illegal Alien Construction Workers

I bet few people saw this story about all the money funneled out during COVID:

NC Tax Preparer Pleads Guilty in $13.9M COVID-19 Fraud Scheme

Seven other return preparers have already pleaded guilty to their roles in the same scheme. 

The media is working hard to avoid the story about how we chased down a Somalian fraudster after he fled the country:

$250 Million Minnesota Fraudster Finally Nabbed — in Mogadishu 

Every once in a while, the media and other Democrats claim to care about debts and deficits, but they clearly don’t when they refuse to help going after fraud and treat every cut or freeze in government spending programs as a disaster.

The only time they really care about deficits is when they falsely claim that Republican tax cuts cost the government trillions of dollars.

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Self-Exiled Chinese Billionaire Guo Wengui Sentenced To 30 Years In U.S. Prison For Massive Fraud – “Let’s Take Down The CCP!”

Guo Wengui, a self-exiled Chinese billionaire and vocal critic of the Chinese Communist Party, was sentenced to 30 years in federal prison Monday for orchestrating a sprawling financial fraud that prosecutors say defrauded more than 1,000 victims worldwide of hundreds of millions of dollars.

U.S. District Judge Analisa Torres handed down the sentence in a Manhattan courtroom filled with Guo’s supporters. She described how Guo preyed on investors who hoped to support democracy in China, using their money to fund a lavish lifestyle while showing no remorse, wrote Politico.

“You took advantage of people’s dreams,” Torres said, adding that Guo “takes no responsibility for his actions and instead insists his conduct caused no loss and harmed no one.”

Before sentencing, Guo, also known as Miles Guo or Ho Wan Kwok, complained about his treatment in custody. He told the court through an interpreter that he had been ill and needed medical attention earlier that day. He briefly defended himself, saying his only goal in coming to the United States was “to destroy the CCP.”

The judge ordered Guo to forfeit $889 million in restitution. Victims who wrote to the court described losing life savings, suffering severe anxiety, and facing family shame over the failed investments.

One victim who testified at trial, Wei Chen, told the judge that Guo’s fraud “destroyed my life” and that of her family.

From tycoon to fugitive

Guo fled China about a decade ago and rebranded himself in the U.S. as a prominent critic of the Chinese government. He cultivated ties with American conservatives, most notably forming a close alliance with political strategist Steve Bannon. In 2020, the two announced plans to overthrow the Chinese Communist Party.

Before his arrest in 2023, Guo lived extravagantly in a luxury apartment overlooking Central Park, owned yachts, race cars, and designer goods, and was a member of Donald Trump’s Mar-a-Lago club.

Prosecutors said Guo raised more than $1 billion from investors between 2018 and 2023 through fraudulent schemes involving his media company GTV Media Group, the Himalaya Farm Alliance, and the Himalaya Exchange. Much of the money allegedly went to support his opulent lifestyle rather than the promised projects.

A federal jury convicted him on nine of 12 counts after a seven-week trial, added Politico.

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A Million Obamacare Users Enrolled Without a Social Security Number

Obamacare is expensive, unconstitutional, socialist, and bloated. It is also — surprise, surprise — riddled with fraud.

Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz revealed the stunning number of Obamacare users who never provided a Social Security number, raising serious questions about the scope of fraud in the government healthcare insurance program.

In a Saturday video, Kennedy and Oz updated the American people on efforts to uncover and root out fraud. The HHS secretary began, “The Obamacare marketplace is plagued by fraud, in large part because the Biden administration dismantled basic program integrity guardrails. [And] partisan lawfare blocked common sense efforts to protect taxpayers. Today, Dr. Oz and I are exposing one of the latest examples of fraud that we’ve uncovered — more than a million people enrolled in Obamacare without Social Security numbers on file. That is a glaring warning side of fraud. If even a single person was on Obamacare with no Social Security number, we should have found out. Why are we paying people we don’t know if they actually exist?” Why indeed. Probably because Democrats love to redistribute money no matter how many criminals benefit.

Oz picked up the thread of the explanation. “Shady insurance agents and other bad actors have been getting paid to enroll unsuspecting Americans in health plans they never signed up for,” he exclaimed. “These rogue agents have been flooding into healthcare.gov. That’s the Obamacare marketplace. They submit applications for fake people, enroll stolen identities, all to collect millions of dollars, improper fees, from insurance companies for selling plans they never legitimately sold. Some of these agents refuse to follow basic rules like providing their clients’ Social Security number. That, my friends, is a huge red flag.”

Under the current administration, HHS and CMS are actually paying attention to red flags. As Kennedy said, “These fraudsters deliberately pick plans with no premiums. No premiums means no bill. No bill means most people never know that they’ve been enrolled in a plan that you and I are paying for with our taxpayer dollars. The only people who benefit are the fraudsters.”

But the current administration has a zero tolerance attitude toward fraud, Oz emphasized. “So here’s what we’re doing about it,” he said. “In May, we took swift action to block this fraudulent behavior directly on healthcare.gov and to our marketplace Call Center. If an agent wants to be paid, [he] must follow the rules. No ifs, ands or buts. They are gonna have to provide government-verified information for their clients to be enrolled.”

This effort is bearing fruit, Kennedy stated. “Thanks to this aggressive enforcement strategy, we’ve already eliminated thousands of fraudulent policies, and we’re just getting started. We’re also working with insurers to cancel every policy that should never have been issued and recover every taxpayer dollar that was fraudulently paid out,” he assured Americans.

Oz agreed, “We’re also scaling up our enforcement efforts to prevent these bad actors from finding new ways to manipulate the system ahead of the open enrollment system this fall, because we know that bad actors don’t simply stop when you cut off one vulnerable area. The Biden administration let healthcare fraudsters run wild. Thanks to President Trump, those days are over.” The battle is ongoing, but there have already been victories.

Kennedy warned, “To every unscrupulous insurance agent and fraudster exploiting the American people, here is our message. If you steal from the American taxpayer, or if you defraud American families, HHS will find you, and we will hold you accountable.” Oz chimed in, “If you’re a fraudster, here’s our advice to you. Do not walk away from us, run, because we are gonna find you.”

Secretary Kennedy stated that his priority is protecting Americans’ health and Americans’ money, now and always.

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US SNAP Payment-Error-Rate Hits High Of 10.62%

The national payment error rate for the Supplemental Nutrition Assistance Program (SNAP) hit 10.62 percent for Fiscal Year (FY) 2025, far exceeding the 6 percent threshold set by Congress.

“While this is a modest decrease from FY 2024, the FY 2025 rate still shows significant waste at the state level,“ the U.S. Department of Agriculture (USDA) said in a June 24 statement.

”Including both overpayments and underpayments, this year’s rate represents a collective $10.1 billion in improper payments nationwide.”

The payment error rate measures how accurately states calculate SNAP eligibility and the amounts that beneficiaries receive.

The One Big Beautiful Bill Act, signed into law by President Donald Trump last year, established a State Quality Control Incentive provision under which states must pay a percentage of SNAP program bills if their payment error rate exceeds a certain limit.

A state with an error rate of 6 percent to 8 percent will be required to fund 5 percent of the benefits. This scales up as error rates get higher. States with error rates of 10 percent or more must fund 15 percent of benefits.

“[This has instituted] real financial consequences for states that mismanage taxpayer dollars,” the USDA stated, noting that these rules could come into effect as soon as Oct. 1, 2027.

States with error rates exceeding 6 percent are also required to submit a Corrective Action Plan to the USDA’s Food and Nutrition Service, explaining how they intend to address the root causes of the high error rates. Some states may end up getting financially penalized.

“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Agriculture Secretary Brooke Rollins said.

“USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics.”

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Leader of Minnesota’s Feeding Our Future Fraud Scheme Arrested in Somalia

The leader of the largest Minnesota pandemic-era fraud scheme was arrested in Mogadishu, Somalia, this week.

Abdikerm Eidleh, 43, was finally taken into custody this week, more than three years after he was indicted in the ‘Feeding Our Future’ fraud probe.

A total of 78 people were indicted or charged by the DOJ in connection with the $350 million Feeding Our Future scheme.

CBS News reported:

An alleged leader of the largest pandemic-era fraud scheme in the country was arrested overseas after being on the run for more than four years, according to federal officials.

Abdikerm Eidleh, 43, was arrested in Mogadishu, Somalia, earlier this week in a daytime raid coordinated by both the FBI and Somali intelligence agencies. He was indicted in September 2022 as part of the sweeping $250 million Feeding Our Future fraud investigation.

“This is a big fish,” Daniel Rosen, U.S. Attorney for Minnesota, told CBS News. “Eidleh was a key leader and was responsible for bribing and recruiting business to steal from the American taxpayer.”

Rosen said Eidleh was “second in command” to Aimee Bock, the convicted ringleader of the scheme, who was just sentenced to more than 40 years in prison.

Investigators allege Eidleh personally collected $5 million in bribes and kickbacks after instructing restaurants and catering businesses to inflate receipts submitted to the Minnesota Department of Education for reimbursement.

Earlier this month, one of the FBI’s most wanted fraud suspects in the massive Feeding Our Future scandal was finally returned to face justice.

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Nursing School Owner Pleads Guilty After Issuing Nearly 3,000 Fake Diplomas

Carleen Noreus, who owned two nursing schools in South Florida, has pleaded guilty to her role in a scheme that sold nearly 3,000 fraudulent nursing diplomas, the Department of Justice (DOJ) said in a June 18 statement.

The defendant, 52, from Plantation, Florida, was president of the Carleen Home Health School Inc. in Plantation and vice president of Carleen Home Health School II Inc. in West Palm Beach.

“Noreus conspired with others to sell fraudulent nursing diplomas and educational transcripts to individuals who had not completed the required coursework or clinical training to earn Registered Nurse (RN), Licensed Practical Nurse/Vocational Nurse (LPN/VN), or Bachelor of Science in Nursing (BSN) credentials,” the DOJ said.

“The fraudulent diplomas and transcripts falsely represented that purchasers had successfully completed the academic and clinical requirements of the schools when, in reality, they had not.”

The documents allowed the buyers to take part in national nursing board examinations. Those who passed the exams obtained nursing licenses and employment in the healthcare sector.

In total, Noreus provided 2,956 fraudulent nursing diplomas through her two schools between April 17, 2018, and Oct. 8, 2025. Of the individuals who obtained fake credentials, roughly 2,274 passed the nursing exams, secured licenses, and gained employment in Florida and other parts of the United States. Both institutions have been shut down by state authorities.

The case is part of the second phase of Operation Nightingale, a multi-state law enforcement action launched in January 2023 to arrest individuals who sell fraudulent nursing degree diplomas and transcripts.

The operation led to 25 individuals being charged for the fraud scheme in January 2023. In a Jan. 25, 2023, statement, the DOJ said that more than 7,600 fake nursing diplomas were issued by three nursing schools in South Florida.

On Sept. 15, 2025, the DOJ said that 30 defendants were charged and convicted in 2023 as part of the operation. In addition, the department also announced charges against 12 people in phase two of Operation Nightingale.

Thirteen individuals have been charged in the second phase, including Noreus, the DOJ said in its latest statement. Noreus, who pleaded guilty to conspiracy to launder money and conspiracy to commit wire fraud, faces a maximum penalty of 20 years in prison for each count.

“Nursing licenses must be earned through education, training, and demonstrated competence, not purchased through fraud,” said U.S. Attorney for the Southern District of Florida Jason A. Reding Quiñones.

“By selling thousands of fraudulent diplomas and transcripts, the defendant undermined the integrity of the nursing profession and our healthcare system. The Southern District of Florida remains committed to holding accountable those who profit by corrupting professional licensing processes and placing the public at risk.”

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