Tag: fraud

Fraud Task Force, DOJ Prosecute Half-a-Billion Dollars in Health Care, COVID Schemes

The Department of Justice (DOJ) announced three separate criminal and civil actions on April 7 seeking to hold two individuals and two companies accountable for schemes to steal more than $500 million from taxpayer-funded programs.

The defendants are two companies implicated in an Affordable Care Act (ACA) fraud scheme, a California man pleading guilty to medication reimbursement fraud, and a Nevada woman sentenced to prison for COVID-19 tax credit fraud, the department said in an April 7 statement.

The DOJ said its efforts support President Donald Trump’s Task Force to Eliminate Fraud, chaired by Vice President JD Vance, which aims to clean up federal benefit programs.

“Thanks to the leadership of President Donald Trump, the Department, working closely with the Task Force to Eliminate Fraud, is supercharging efforts to take down every fraudster and bring them to justice,” Acting Attorney General Todd Blanche said.

“In one day, the Department prosecuted the theft of a half-billion in taxpayer dollars. All those ripping off the American people are on notice.”

Obamacare Scheme

One case involves insurance brokerage company AP of South Florida LLC (APSF), which is accused of fraudulently enrolling thousands of vulnerable people into fully federally subsidized ACA plans, also known as Obamacare. The scheme resulted in the federal government paying $141.5 million in unwarranted subsidies.

APSF targeted vulnerable, low-income people who were unemployed, homeless, or experiencing mental health and substance abuse disorders. Most of them did not meet the minimum eligibility requirements for ACA subsidies.

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California Supreme Court Orders Sheriff Bianco to Pause His Massive Election Fraud Investigation and Preserve 650,000 Ballots He Seized

The California Supreme Court on Wednesday ordered Sheriff Chad Bianco to pause his massive election fraud investigation and preserve the 650,000 ballots he seized.

Last month, a state appellate court rejected California Democrat Attorney General Rob Bonta’s emergency writ to halt Riverside County Sheriff Chad Bianco’s bombshell investigation into 45,000 extra votes mysteriously counted in the November 2025 special election.

Chad Bianco, a Republican currently running for California governor as a Republican, moved to seize approximately 650,000 ballots and initiate a recount after a citizens’ group reported significant discrepancies, according to CalMatters.

Bianco revealed that a team of 10 investigators had already begun counting ballots before being ordered to halt their work, as part of an ongoing election investigation, The Sun reported.

According to Bianco, the team’s initial progress suggested that counting the approximately 611,000 ballots would take about five days to complete. However, the effort was paused before a full review could be conducted.

Earlier this week Bianco paused his investigation because of the onslaught of legal issues.

California Attorney General Bonta slammed Sheriff Bianco and celebrated the State Supreme Court’s order.

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JD Vance’s Task Force Uncovers $6 Billion in Potential Fraud, Begins Taking Action: Report

Vice President J.D. Vance has reportedly uncovered over $6 billion in potential fraud after President Donald Trump tapped him to lead a nationwide task force meant to root out criminal activity.

The task force has identified $6.3 billion in government contracts linked to potentially fraudulent businesses, The Daily Caller reported Wednesday.

“The task force, alongside the General Services Administration (GSA), are beginning to send out letters to nearly 400 businesses with government contracts that they believe could be fraudulent,” according to the report. The investigation found 895 contracts awarded to 392 businesses, totaling $6.3 billion, “with $3 billion still left to be rewarded.”

These businesses will have 30 days to prove their legitimacy and must provide evidence of a real, physical location where their operations take place.

The task force was created shortly after reports circulated of mass fraud that was uncovered in Minnesota earlier this year, when multiple day care centers — many run by Somali immigrants — were found to have no children enrolled, yet were still receiving massive quantities of taxpayer funds.

The Department of Justice estimated that several billion dollars have been stolen by phony organizations in Minnesota alone. The DOJ cited examples of waste and mismanagement of social services programs meant to provide food and health care for the needy.

In his executive order establishing the task force, Trump wrote, “The staggering fraud and waste in Minnesota alone is a case in point. Federal prosecutors in the State estimate that Medicaid fraud in recent years could total in the billions. Nearly 9 percent of the roughly $866 million spent on food stamps in Minnesota each year is estimated to be spent in error.”

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U.S. Marshals RAID Home of Former Republican Lobbyist Jim Courtovich

U.S. Marshals raided the upscale home of former Republican lobbyist Jim Courtovich, enforcing a federal court order tied to a $4 million judgment stemming from allegations of financial misconduct.

Courtovich, the founder of Sphere Consulting and a fixture on the K Street party circuit, once rubbed elbows with media elites and GOP heavyweights.

During the 2016 Republican primary, Courtovich supported Jeb Bush, one of Trump’s main rivals. He reportedly did not vote in the 2016 general election.

According to a report from The New York Times and journalist Brody Mullins, a team of armed federal agents arrived at Courtovich’s multimillion-dollar residence near Kalorama just before 10 a.m., loudly announcing their presence and warning they were prepared to forcibly enter if necessary.

The raid enforces a federal court judgment ordering him to repay $4 million-plus, in what Saudi-backed investors claim was a brazen breach of contract and outright fraud.

“US Marshals this morning raided the home of Jim Courtovich, the once-high flying Republican lobbyist & fixer.
Saudi & other business partners had won a judgment against him for stealing $4m, & the raid was an effort to collect, reports Brody Mullins, who was on the scene & has a lively dispatch in his new Influence newsletter.”

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O’Keefe Media Group: California’s Top Controller Communications Official Admits Audits “Are Not Getting Done”

The O’Keefe Media Group on Tuesday released undercover video of California’s top Controller Communications official admitting that audits “are not getting done” while acknowledging that fraud is rampant in the state.

Bismarck Obando told an undercover O’Keefe Media Group journalist that there is no plan to tackle homelessness.

“Do you feel there’s fraud going on in the state of California?” the OMG journalist asked Obando.

Without skipping a beat he replied, “Everywhere, cities, counties, special districts, hospitals, insurance companies.”

“We just can’t conduct the audits,” Obando told the journalist.

“It’s funny because they haven’t funded us to do those audits…they keep cutting our auditing teams,” he said.

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SoCal: Orange County Man Pleads Guilty to Submitting $270 Million in Fraudulent Claims to Medi-Cal in 11 Months: DOJ

A man in Orange County, California, pleaded guilty to orchestrating a scheme to steal $270 million in bogus Medi-Cal claims in 11 months, the DOJ announced on Tuesday.

“Paul Richard Randall, 66, of Orange, pleaded guilty Monday to one count of wire fraud committed while on release. He has been in federal custody since June 2025,” the DOJ said.

According to federal prosecutors, Randall and others, through a business called Monte Vista Pharmacy, submitted claims for expensive prescription drugs that contained generic ingredients that were “not medically necessary.”

Monte Vista Pharmacy billed Medi-Cal millions of dollars a month after it suspended its requirement that healthcare providers “obtain prior authorization before providing certain health care services or medications as a condition of reimbursement,” the DOJ said.

Medi-Cal suspended the prior authorization as it transitioned to a new payment system.

Of the $270 million that was billed to Medi-Cal, Randall and his co-conspirators received $178 million.

Randall and the other defendants laundered the money by transferring the funds to a third party to pay “kickbacks” to Patricia Anderson, 58, of West Hills.

Randall is facing up to 30 years in federal prison.

“This defendant used a public health program as his personal piggy bank,” said First Assistant U.S. Attorney Bill Essayli. “This guilty plea should send a message that this administration — consistent with the President’s war on fraud — will not turn a blind eye while criminals fleece taxpayers.”

“Thanks to the leadership of President Donald Trump, the Department, working closely with the Task Force to Eliminate Fraud, is supercharging efforts to take down every fraudster and bring them to justice,” said Acting Attorney General Todd Blanche.

“In one day, the Department prosecuted the theft of a half-billion in taxpayer dollars. All those ripping off the American people are on notice,” Blanche added.

“The defendant was a repeat fraudster who caused Medi-Cal, a program designed to help those in need, to be billed nearly $270 million for expensive and medically unnecessary medications,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.

“He and his co-schemers stole over $178 million through false and fraudulent claims for these medications, lining their own pockets with public funds. The Criminal Division will aggressively prosecute those who defraud Medicaid and exploit taxpayer-funded benefit programs,” he said.

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California FRAUD SCANDAL Keeps Getting Worse: LA School District Employee Accused of Running $22M Kickback Scheme

The latest corruption case in California’s public education system serves as a warning sign of a deeper structural failure—one that reflects weak oversight, misplaced priorities, and leadership that has consistently failed to enforce accountability.

As the Los Angeles Times reported, a former Los Angeles Unified School District employee is accused of directing $22 million in contracts to a private technology firm in exchange for roughly $3 million in kickbacks. 

Prosecutors have described the scheme as the largest of its kind in the district’s history, involving shell companies, manipulated bidding processes, and deliberate efforts to conceal wrongdoing.

The details are not merely concerning—they are revealing. According to the complaint, the employee allegedly controlled the contract selection process, removed oversight personnel, and coordinated directly with the vendor to ensure favorable outcomes. 

At one point, messages cited by prosecutors indicate explicit awareness of wrongdoing, including instructions to delete communications and avoid detection.

This level of coordination does not occur in a system with strong safeguards. It occurs in a system where oversight mechanisms either fail or can be easily bypassed.

That reality leads to a broader question: how does a scheme of this scale operate for years inside one of the largest school districts in the country without being stopped?

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MORE FRAUD: Colorado Made at Least $77.8 MILLION in Improper Autism Therapy Payments

A new federal audit has identified significant improper payments within Colorado’s Medicaid-funded autism therapy system, adding to a growing pattern of oversight failures in public healthcare spending. 

The findings, released by the Office of Inspector General, focus on Applied Behavior Analysis (ABA), one of the most widely used therapies for individuals diagnosed with autism spectrum disorder.

ABA therapy is designed to improve communication, social interaction, and behavioral functioning, and it has become a central component of autism treatment nationwide. 

As demand has increased, so has government spending. In Colorado, fee-for-service Medicaid payments for ABA rose sharply from $60.1 million in 2019 to $163.5 million in 2023. That rapid expansion, however, has not been matched by adequate oversight.

The audit examined Medicaid payments made in 2022 and 2023 and found systemic noncompliance with federal and state requirements. 

Every single one of the 100 sampled enrollee-months reviewed included at least one claim that was either improper or likely improper. That finding alone signals a structural issue rather than isolated billing errors.

Improper payments in this context do not necessarily mean intentional fraud in every instance, but they do indicate that providers billed for services that were not properly documented, not eligible under program rules, or not supported by sufficient clinical justification. 

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Trump Admin Busts Open Gavin Newsom’s $146 BILLION Medi-cal FRAUD Machine

Fox News just laid bare the staggering scale of waste, fraud, and abuse plaguing California’s Medi-Cal program under Governor Gavin Newsom.

In a hard-hitting segment, Kayleigh McEnany highlighted the eye-watering numbers: $146 billion per year lost to fraud in the state’s Medicaid expansion.

“That is slightly more than Warren Buffett’s estimated net worth. It is more than the GDP of several small countries,” McEnany stated.

The revelation comes as the Trump administration ramps up its nationwide assault on entitlement fraud through the White House Anti-Fraud Task Force and aggressive oversight by Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz.

Oz didn’t hold back when asked about the bigger picture.

“How big do you think this fraud is nationwide?” McEnany pressed.

“We believe nationwide it’s $100 billion in Medicare and Medicaid,” Oz replied. “If you’re worried about Medicare being there for you… and you’re worried that it’s going to expire… This fraud, getting rid of it, will DOUBLE the life expectancy of the Medicare trust fund.”

He added, “That’s a massive increase in numbers of years of extra Americans can trust that the program will be there for them.”

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Minnesota Judge Hands Somali Fraudster Just 6 Months After $500K Theft in Child Food Scam

A fraudster in the massive “Feeding Our Future” scandal has received just six months in jail after stealing nearly half a million dollars in taxpayer money meant for children.

Zamzam Jama was sentenced to six months behind bars and ordered to repay $491,000 for her role in the scheme.

The sentence was handed down by U.S. District Judge Nancy Brasel, who was somehow appointed by President Trump back in 2018, one day after a co-conspirator received only a one-year term.

Brasel has previously ruled in favor of mail-in voting and counting ballots days or even weeks after an election has concluded. Mail-in ballots are the most common method that Democrats use to cheat.

The case involves one of the largest fraud operations in recent U.S. history.

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