Homepage › Forums › Current Events Board › California fraud between $312 billion and $425 billion
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Mick1.
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April 1, 2026 at 1:46 pm #11120
Mick1ParticipantYou think Minnesotan fraud was bad. Herb Morgan wants to be California’s next controller. He says California has experienced between $312 billion and $425 billion in fraud over the last five years in health care, unemployment insurance, infrastructure and homelessness spending.
Damning breakdown of California’s alleged fraud — and where your cash is being burned
Breakdown:
- $95 bils to $115 bils for Medi-Cal.
- $55 bils, unemployment insurance.
- $30 bils. to $50 bils. in capital projects and mega projects
- $20 bils to $25 bils in CalFresh food aid, homelessness and housing programs.
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April 2, 2026 at 3:52 am #11121
BeyondThunderdome
ParticipantThe article is built around a partisan campaign estimate, not a neutral audit proving California lost $425 billion to fraud. The number comes from a paper by Republican controller candidate Herb Morgan, who combines fraud, improper payments, inefficiency, cost overruns, and disputed policy spending into one large “exposure” figure. Even his own framing does not treat every dollar in that total as proven fraud.
That said, some of the underlying problems are real. California’s auditor has flagged major weaknesses in programs like EDD, Medi-Cal, and CalFresh, and the state’s homelessness oversight has also been criticized for failing to track costs and outcomes well enough to judge effectiveness. So the article is using real oversight failures to support a highly exaggerated political narrative, rather than offering a clean factual accounting of fraud.
The most defensible officially documented failure amount is roughly $46.2 billion in EDD paid ineligible benefits, plus narrower figures like $1.013 billion potentially fraudulent LWA payments and $1.9 billion in questionable Medi-Cal payments. The much bigger numbers in that article come from bundling those with broader policy spending and inefficiency *claims*.
In other words, California can do better, but this is a political piece, not a neutral accounting. Only about 10% of what he’s claiming is concrete official loss figures, and the rest is political aggregation. It takes real failures and packages them into a more inflammatory narrative by mixing documented losses with estimates of waste, inefficiency, and policy spending the Republican opposes.
NO MALARKEY
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April 2, 2026 at 5:31 pm #11133
Mick1ParticipantThe paper is from the Manhattan Institute, written by Chris Rufo. Why immediately disregard a financial pro who points out examples of waste fraud and abuse?
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April 6, 2026 at 11:28 am #11143
Mick1ParticipantNick Shirley was in California for a few days and uncovered a $170 million fraud.
Californians are discovering that fraud is not a bug, but a feature
In 2022, California had 13.9 million Medi-Cal patients. By 2026, it had only increased to 14.0 million. And yet…the budget soared by $100 billion in that time frame.
Elon Musk says the California High Speed Rail Project is riddled with fraud, waste and abuse. Newsom says 463 of the 494 miles of track are ready to be laid creating 16,400 jobs.
Trump has appointed JD Vance the “National Fraud czar.” Good luck to the VP…
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April 6, 2026 at 3:01 pm #11145
Beeg_Dawg
Participant[quote quote=11143]Nick Shirley was in California for a few days and uncovered a $170 million fraud. Californians are discovering that fraud is not a bug, but a feature In 2022, California had 13.9 million Medi-Cal patients. By 2026, it had only increased to 14.0 million. And yet…the budget soared by $100 billion in that time frame. Elon Musk says the California High Speed Rail Project is riddled with fraud, waste and abuse. Newsom says 463 of the 494 miles of track are ready to be laid creating 16,400 jobs. Elon Musk says ‘it’s all going to fraud’ as Gavin Newsom-led California signals requiring additional funds for high speed rail project Trump has appointed JD Vance the “National Fraud czar.” Good luck to the VP…[/quote]
C’mon Mick. You know any estimate of fraud is partisan, racist or xenophobic.
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April 8, 2026 at 12:06 pm #11146
Mick1ParticipantSpeaking of frauds, here comes your next Democratic candidate for Governor, Eric Swalwell…
Rep. Eric Swalwell vows to push back on ICE in bid for California governor
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April 17, 2026 at 9:30 am #11166
Mick1Participant[quote quote=11146]Speaking of frauds, here comes your next Democratic candidate for Governor, Eric Swalwell… Rep. Eric Swalwell vows to push back on ICE in bid for California governor[/quote]
…and there goes Eric Swalwell, former gubernatorial candidate, dropping out after an avalance of a sex scandal.
New Emerson poll shows candidates as follows:
- Steve Hilton (17%)
- Chad Bianco (R, 14%)
- Billionaire Activist Tom Steyer (D, 14%)
- Former HHS Secty Xavier Becerra (D, 10%)
- Social media darling Katie Porter (D, 10%)
- SJ Mayor Matt Mahan (D, 5%)
- Former LA Mayor Antonio Villaraigosa (D, 3%)
- Betty Yee (D, 1%)
- Tony Thurmond (D, 1%)
- Someone Else (1%)
- Undecided (23%)
Steyer and Becerra had the largest gains in the wake of Swalwell’s departure.
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April 13, 2026 at 9:44 am #11157
Mick1ParticipantSpeaking of frauds, here comes your next Democratic candidate for Governor, Eric Swalwell… Rep. Eric Swalwell vows to push back on ICE in bid for California governor
Mr. Swalwell has decided to drop out of the Governor’s race after four women have accused him of sexual harassment.
Eight years earlier, the pious Mr. Swalwell led the charge in unsuccessfully attempting to block Judge Kavanagh’s Supreme Court nomination, stating that even anonymous sexual harassment charges need to be fully examined and taken seriously.
In a moment of delicious irony, here are Rep. Swalwell’s comments:
“What are the chances that three or four women, independently, who never met each other, would have similar experiences with one person?” Swalwell said then, adding that such allegations pointed in the same direction and warranted scrutiny.
Swalwell led hypocritical attacks on Kavanaugh
Personally, I would have dropped out as soon as my long-term affair with a Chinese spy was publicized, but maybe that’s just me…
Swalwell FBI Files Fight Revives China Spy Controversy
Of course, if it’s okay for Dianne Feinstein, it must be okay for Eric Swalwell…
The Chinese (and Russian, and North Korean) Spies Among Us – LAmag
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