Tag: taxes

Prosecutor Calls Newsom ‘King Of Fraud’ For Oversight Failures

U.S. First Assistant Attorney Bill Essayli Thursday called California Gov. Gavin Newsom “the king of fraud,” accusing him of a lack of oversight on spending to address homelessness.

Essayli made the comments on the “Fox and Friends” telecast, during which he discussed the federal fraud charges that were filed in October against real estate executives Steven Taylor and Cody Holmes for allegedly misusing grant money meant for homeless housing.

Holmes, 31, of Beverly Hills was charged with mail fraud charge that was allegedly linked to millions of dollars in grant money that the state paid Shangri-La Industries to purchase, build and operate homeless housing in Thousand Oaks, just north of Los Angeles. Holmes was Shangri-La’s chief financial officer.

Taylor, 44, of Brentwood, was charged with seven counts of bank fraud, one count of aggravated identity theft and one count of money laundering.

Essayli Thursday said the charges are the “tip of the iceberg” in an investigation he launched with a task force in April. He said more charges would be coming, probably later this month.

The state spent $24 billion in the last five years to address homelessness and can’t account for where the money went, Essayli said on “Fox and Friends.”

President Donald Trump on Tuesday on X said,  “California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud investigation of California has begun.”

Newsom’s press office fired back on X. It called Trump a liar and noted Newsom has “BLOCKED $125 billion in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artists Trump celebrates, excuses, and pardons.”

The Center Square reached out Thursday afternoon to the governor’s office, but did not get a response.

When The Center Square asked the White House Thursday about Newsom, the press office pointed to Press Secretary Karoline Leavitt’s comments during a press briefing on Wednesday. Leavitt told reporters that Trump has directed all agencies to look at federal spending programs “in not just Minnesota, but also in the state of California, to identify fraud and to prosecute to the fullest extent of the law, all those who have committed it.”

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Billions in healthcare fraud discovered in California, Minnesota ‘pales in comparison’: Dr Oz

Billions of dollars in alleged fraudulent healthcare spending is being investigated in California, specifically probing foreign nationals operating illegal hospice facilities — officials announced Friday in a bombshell press conference.

“We have witnessed a sevenfold increase in hospice in LA County, sevenfold. That doesn’t happen naturally,” Dr Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services told The Post during at the press conference.

“There is not seven times more deaths in LA County than there were five years ago. These are fraudsters, and these do tend to be foreign influences, either Russian and Armenian gangs, mafia, that are leading a lot of these efforts.”

Fraudsters who run these facilities are working with about “100 bad doctors,” who convince a patient they’re dying to enroll them in hospice care, Dr Oz said, adding about 100,000 people have handed over their Medicare numbers.

“We are major focused on this issue, and I think our suspicion, our belief, is that the fraud in California will magnify whatever’s happening in Minnesota,” United States Attorney Bill Essayli said. “What’s happening in Minnesota pales in comparison to the level of fraud that we believe is occurring in California.”

Dr Oz said the Trump administration is also cracking down on taxpayer money being used to treat illegal immigrants for elective procedures.

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Biden Judge Blocks President Trump’s $10 Billion Welfare Funding Freeze in Five Blue States

A federal judge on Friday blocked President Trump’s $10 billion welfare funding freeze in five blue states.

US District Judge Arun Subramanian, a Biden appointee, issued a Temporary Restraining Order (TRO) and blocked Trump’s halt on funding for childcare and social services.

On Tuesday, President Trump sent letters to California, Colorado, New York, Minnesota and Illinois to inform them of the federal cuts.

Trump made the cuts to the welfare programs due to widespread fraud in the state’s programs.

The five states were given a January 20 deadline.

California Attorney General Rob Bonta and the other Democrat attorneys general filed a lawsuit against the Trump Administration and asked the judge for an emergency order.

Judge Subramanian halted Trump’s welfare freeze for two weeks as both sides submit arguments to the court.

Politico reported:

A federal judge on Friday blocked the Trump administration from freezing $10 billion in welfare funds earmarked for five blue states.

In response to a request from the states for an emergency injunction, U.S. District Judge Arun Subramanian ordered that the money from three programs — Child Care Development Fund, Temporary Assistance to Needy Families, and Social Services Block Grants — must continue to flow to the states.

His decision, which expires in two weeks, was meant to give the two sides time to submit more extensive legal arguments on whether the cuts should be allowed or the ban kept in place, the judge wrote.

Earlier in the week, California, Colorado, Illinois, New York and Minnesota received letters from the federal Department of Health and Human Services notifying them of the cuts. California is in line to receive about half of the $10 billion in targeted funding.

The attempt to withhold the funds was in response to what the Trump Administration has alleged without evidence is widespread fraud and waste in the states’ welfare programs. Along with the cuts, administration officials are also requesting reams of information about how states administer the programs in an effort to bolster the claims of malfeasance and ineptitude.

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78% of Somali Immigrant Households Still on Welfare After a Decade, Congressman Gill Says, Citing State Welfare Stats

78 percent of Somali immigrant households remain on welfare even after a decade in the United States—a statistic that ignited a fierce debate on Capitol Hill and reopened the debate over immigration, welfare dependency, and political accountability. 

The statistic, cited by Rep. Brandon Gill, during a heated Oversight Committee hearing, has become a flashpoint in a broader reckoning over Minnesota’s sprawling welfare system and recent revelations of large-scale fraud.

The exchange unfolded as Rep. Gill pressed state officials and witnesses on disparities in welfare usage. He contrasted the figures he cited for Somali-headed households with far lower rates among native-born Minnesota households, arguing that the gap raised serious questions about policy outcomes.

When challenged, Democratic witnesses attempted to blur the distinction, insisting that many Somali Minnesotans are American-born and culturally integrated. Gill rejected that framing, returning repeatedly to the numbers and arguing that outcomes—not intentions—are what ought to matter in public policy.

The congressman went further, stating that more than 80 percent of Somali-headed households receive some form of welfare assistance. Even after ten years of residency, he said, nearly four in five remain dependent on government support—a figure he argued is incompatible with claims of successful integration.

These remarks landed amid a cascade of corruption investigations in Minnesota that have shaken public confidence. State and federal authorities have uncovered what they describe as one of the largest fraud scandals in recent US history, involving alleged abuse of childcare subsidies, food assistance programs, and healthcare funding.

Investigators estimate that as much as $9 billion may have been siphoned off through fake nonprofits and shell organizations. According to prosecutors, many of these operations inflated enrollment numbers or fabricated services while collecting taxpayer dollars.

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President Trump Withdraws U.S. from 66 International Organizations — Here’s the Full List

President Trump just signed a proclamation withdrawing the United States from dozens of foreign organizations.

These include over 30 United Nations entities, as well as dozens of other international groups that do not serve American interests.

Here’s the full list of all the organizations President Trump just pulled us out of:

Non-UN Organizations
• 24/7 Carbon-Free Energy Compact
• Colombo Plan Council
• Commission for Environmental Cooperation
• Education Cannot Wait
• European Centre of Excellence for Countering Hybrid Threats
• Forum of European National Highway Research Laboratories
• Freedom Online Coalition
• Global Community Engagement and Resilience Fund
• Global Counterterrorism Forum
• Global Forum on Cyber Expertise
• Global Forum on Migration and Development
• Inter-American Institute for Global Change Research
• Intergovernmental Forum on Mining, Minerals, Metals & Sustainable Development
• Intergovernmental Panel on Climate Change (IPCC)
• Intergovernmental Science-Policy Platform on Biodiversity & Ecosystem Services
• International Centre for the Study of the Preservation & Restoration of Cultural Property
• International Cotton Advisory Committee
• International Development Law Organization
• International Energy Forum
• International Federation of Arts Councils & Culture Agencies
• International Institute for Democracy & Electoral Assistance
• International Institute for Justice & the Rule of Law
• International Lead & Zinc Study Group
• International Renewable Energy Agency
• International Solar Alliance
• International Tropical Timber Organization
• International Union for Conservation of Nature
• Pan American Institute of Geography & History
• Partnership for Atlantic Cooperation
• Regional Cooperation Agreement on Combating Piracy in Asia
• Regional Cooperation Council
• Renewable Energy Policy Network for the 21st Century
• Science & Technology Center in Ukraine
• Secretariat of the Pacific Regional Environment Programme
• Venice Commission (Council of Europe)

United Nations Organizations
• UN Department of Economic & Social Affairs
• ECOSOC — Economic Commission for Africa
• ECOSOC — Economic Commission for Latin America & the Caribbean
• ECOSOC — Economic & Social Commission for Asia & the Pacific
• ECOSOC — Economic & Social Commission for Western Asia
• International Law Commission
• International Residual Mechanism for Criminal Tribunals
• International Trade Centre
• Office of the Special Adviser on Africa
• SRSG for Children in Armed Conflict
• SRSG on Sexual Violence in Conflict
• SRSG on Violence Against Children
• Peacebuilding Commission
• Peacebuilding Fund
• Permanent Forum on People of African Descent
• UN Alliance of Civilizations
• UN-REDD Programme
• UN Conference on Trade & Development
• UN Democracy Fund
• UN Energy
• UN Women
• UN Framework Convention on Climate Change
• UN Human Settlements Programme
• UN Institute for Training & Research
• UN Oceans
• UN Population Fund
• UN Register of Conventional Arms
• UN System Chief Executives Board for Coordination
• UN System Staff College
• UN Water
• UN University

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HERE WE GO: NY Governor Kathy Hochul and Zohran Mamdani Announce Plans to Spend Billions on ‘Free’ Childcare Program

New York Governor Kathy Hochul and newly sworn in New York City Mayor Zohran Mamdani have just announced their plans to spend billions of dollars on a ‘free’ childcare program. What could possibly go wrong?

They are doing this as the state of Minnesota is imploding under the weight of a massive fraud scandal which is almost completely focused on daycare centers that received millions in funding even though many of them seem to be nothing more than empty store fronts.

Are New York taxpayers about to get fleeced too?

The New York Post reports:

NY Gov. Hochul announces lofty socialist plan to offer ‘free’ child care — with $4.5B pricetag

New York inched toward socialist Mayor Zohran Mamdani’s lofty promise of universal child care Thursday — as Gov. Kathy Hochul rolled out a multi-billion-dollar plan to vastly expand kids programs.

The proposed “2-Care” program for all 2-year-olds in the Big Apple, along with a buildup of existing pre-K and early childcare in the rest of New York, will ultimately provide care for 100,000 more children across the state, Hochul said.

Mamdani, standing alongside the governor for a back-slapping announcement in the Flatbush YMCA, crowed that the proposals will help families struggling with the cost of childcare in New York City.

“We are now going to be able to fix 3-K, we are going to be able to deliver 2-Care universally across this city over the next four years and we are going to be able to make it easier to raise a family in a city where today it’s a good deal if you can get $22,500 a year for childcare,” he said.

The total price tag for Hochul’s “free” childcare proposals – which will be part of her “State of the State” address next week – will be $4.5 billion statewide, of which $1.7 billion is added spending.

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BUSTED: Ilhan Omar Caught Trying to Funnel $1M to a “Substance Abuse Clinic” Operating Out of a Restaurant Run by Three People at the Same Address — GOP TORPEDOES the Earmark

Another Minnesota money pipeline just got shut down, and this one leads straight back to Rep. Ilhan Omar.

The funding, which was tucked into a federal spending bill, was purportedly destined for a “substance abuse clinic” in Omar’s home state of Minnesota.

However, a shocking investigation led by Senator Joni Ernst (R-IA) revealed that the “clinic” was anything but legitimate.

During an interview on Fox Business, Senator Ernst detailed the absolute absurdity of the proposal, describing a trail of red flags that would make any honest taxpayer’s blood boil.

“What I uncovered the other day, in one of our spending bills making its way through Congress, was a $1 million earmark from Representative Ilhan Omar of Minnesota.

“This earmark was supposedly going to a substance abuse clinic, which actually happened to be housed in a restaurant and run by three individuals who share the same residential address, according to their IRS paperwork. Tons of red flags.

“So this is what we saw with the fraud involving the daycare centers. Now we see other earmarks coming directly from members of Congress where it seems fraud is being perpetrated as well.

“I raised the issue, and fortunately, the House has now stripped that earmark out of that spending bill. But again, this is how easy money has been flowing to bad actors in Minnesota.”

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Dr. Oz Puts Tim Walz on Notice Over ‘Deep Rot’ of Minnesota’s Medicaid Fraud

Dr. Oz, Administrator for the Centers for Medicare & Medicaid Services (CMS), has put Tim Walz on notice. Walz, who is so deeply embroiled in his state’s massive fraud scandal that he was forced to drop out of the Minnesota governor’s race this week, is also facing a criminal probe by the DOJ and a Congressional hearing next month.

“At CMS and HHS, we’re increasingly worried about the deep rot within Minnesota’s Medicaid and social services system, which are supposed to protect the most vulnerable Americans,” Dr. Oz said.

“The more we uncover, the more it becomes clear: it’s much worse than we were led to believe by state government officials. We’d previously learned that illegal immigrants were still getting care with allegedly state-only Medicaid programs that were actually using federal taxpayer funds,” Oz said. “And, because of that, we already withheld $1.3 billion from California, Illinois, and yes, Minnesota, which always seems to show up on the list of states with the worst fraud, waste, and abuse.”

“But this is only the tip of the iceberg,” Oz continued. “We have an unfortunate announcement for the Walz administration. They have to admit they were warned. Last month, we instructed the Walz administration to produce a corrective action plan by the end of the year, which we received late New Year’s Eve and found deeply insufficient.”

“We don’t want to hear, for example, that your state law doesn’t allow you to protect federal taxpayers from Somali fraud. And we want a sense of urgency to fix this, as well as clear milestones to hold Minnesota accountable on progress,” Oz said. 

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Keith Ellison Calls Massive Fraud ‘Not Serious’ After Audio of Him Helping Fraudsters Resurfaces

Back at the beginning of December, Townhall reported how Minnesota Attorney General Keith Ellison was not only working to help Somali fraudsters keep access to funding, but that he allegedly received campaign donations for doing so. Here’s what American Experiment wrote about Ellison at the time:

Keith Ellison, Minnesota’s Attorney General, can clearly be heard pledging his support to individuals who would soon become his family’s campaign donors and later Feeding Our Future criminal defendants.

His recorded statements flatly contradict his contemporaneous public statements and raise uncomfortable questions about the intersection between political fundraising and constituent services.

American Experiment has exclusively obtained the complete 54-minute, 44-second audio file of a private December 2021 meeting between state Attorney General (AG) Keith Ellison and key figures in the Feeding Our Future scandal.

As I wrote last week, the audio file was named as Exhibit 710 on the evidence list presented to the court by Aimee Bock’s defense attorney, Kenneth Udoibok. The recording was not offered into evidence during the six-week trial that concluded last month, with Bock’s conviction on all seven counts she faced. A timeline of relevant events can be found here.

Now Fox News has picked up the story, and Ellison is not happy about it.

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Nick Shirley Drops Another Video, and It Will Blow Your Mind

Independent journalist Nick Shirley’s back at it, and his second Minnesota fraud video packs the same explosive punch as the first.

That original 42-minute bombshell ripped the lid off Somali-run daycares that are raking in millions from taxpayers while sitting empty, while the Walz administration did nothing to stop it.

The legacy media have been aggressively trying to discredit Shirley and his reporting, but he’s not backing down. In fact, he’s doubling down with fresh footage that makes his first video look like small beans. Last month, after his team dug up over $110 million in shady dealings in just one day, Tim Walz clearly felt the heat. The Democrat governor bailed on his reelection bid, and Shirley took a much-deserved victory lap.

Since then, the situation has gotten worse for Walz. As we previously reported, Minnesota’s legislative auditor dropped a bombshell report this week, revealing that. Walz’s Department of Human Services cooked the books, skipped controls, and blew oversight of $400 million-plus in grants. Employees faked documents to dodge audits.

I suspect this could shove Walz out the door for good—and potentially land him in cuffs.

Shirley’s new video dials things up to 11.

David Hoch, co-founder of Minnesotans for Responsible Government, joined him on the ground in Minneapolis, revealing an insane truth: this fraud hits hundreds of billions nationwide. Minnesota’s slice? At least $80 billion. Layers of shell companies obscure the cash trail, including 1,200 medical transport outfits in the area that do nothing while collecting taxpayer dollars.

Hoch swears by his evidence. “I have been to many of these transportation companies, and I’ve been time-stamping my photographs for a whole year at one facility in Minneapolis, and those vans in that parking lot had not moved one inch in an entire year. They’re all still sitting there.”

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