Key takeaways
- Fraud is a pervasive issue in the US, impacting various sectors.
- California’s lack of voter ID requirements potentially facilitates election fraud.
- A new task force aims to improve communication between government departments to combat financial fraud.
- California’s Medi-Cal program has seen significant budget growth, raising fraud concerns.
- California’s budget has shifted from a surplus to a significant deficit.
- The complexity of California’s healthcare funding poses challenges to fraud detection.
- Medicare beneficiary numbers are highly valuable to fraudsters.
- Hospice care in California is particularly susceptible to fraud, with organized crime involvement.
- The hospice system’s billing practices make it vulnerable to fraud.
- One third of the hospices in the US are located in LA County, indicating potential oversight issues.
- The concentration of hospices in LA County suggests challenges in healthcare quality.
- Organized crime’s involvement in hospice care highlights systemic vulnerabilities.
- The lack of direct oversight in hospice billing facilitates fraudulent activities.
- Seniors’ Medicare numbers are more valuable to fraudsters than credit cards.
- California’s fiscal health has drastically changed, impacting public services.
Guest intro
Nick Shirley is an independent journalist and YouTuber known for on-the-ground investigations into government fraud. He gained national attention with a December 2025 viral video exposing over $100 million in alleged fraud in Minnesota’s government-funded childcare programs. His latest work uncovers $170 million in suspected daycare and Medi-Cal fraud in California, part of the state’s $222 billion program.
The prevalence of fraud in the US
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There is so much fraud here in the United States it’s unbelievable
— Nick Shirley
- Fraud affects multiple sectors, including elections and healthcare.
- California’s voter ID laws are seen as a vulnerability for election fraud.
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They’re one of the states that don’t require voter ID so I really just wanna show people how easy it is to vote
— Nick Shirley
- The lack of voter ID requirements is a critical issue for election integrity.
- Fraud detection efforts are hampered by lack of inter-departmental communication.
- A new task force aims to enhance communication to address financial fraud.
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All these departments inside the government… are now gonna be talking together
— Nick Shirley
- The task force is expected to lead to increased prosecutions.
- Understanding the scope of fraud is essential for effective policy responses.
California’s healthcare system and fraud vulnerabilities
- California’s Medi-Cal program budget has increased significantly.
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In 2022 they had a $108,000,000,000 go towards Medi-Cal
— Nick Shirley
- The program’s enrollment has also seen a massive rise.
- The increase in budget and enrollment raises concerns about potential fraud.
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The proposed budget for Medi-Cal is now 222,000,000 and their enrollments 40,000,000
— Nick Shirley
- The complexity of healthcare funding makes fraud detection challenging.
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They wanna make it so big and so complex that it’s hard to actually crack down on
— Nick Shirley
- Protecting seniors’ Medicare numbers is crucial due to their high value to fraudsters.
- Medicare beneficiary numbers are more valuable than credit cards to fraudsters.
- Fraudsters target seniors due to the value of their healthcare information.
Financial challenges and implications for public services
- California’s budget has shifted from a surplus to a deficit.
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California at one point is operating a $100,000,000,000 surplus before 2020 now they’re operating in a… $20 to $40,000,000,000 deficit
— Nick Shirley
- The fiscal changes have implications for public service funding.
- Understanding these changes is crucial for assessing California’s financial health.
- The deficit impacts the state’s ability to provide essential services.
- The shift in budgetary status highlights the need for fiscal accountability.
- California’s financial health is a critical issue in the broader context of state governance.
- The budget deficit underscores the importance of effective financial management.
Hospice care fraud and organized crime involvement
- Significant fraud is occurring in California’s hospice care system.
-
There’s thousand percent increase in these hospices Armenia and Russian mafias are running these hospices
— Nick Shirley
- Organized crime’s involvement highlights systemic vulnerabilities.
- The hospice system allows for billing without direct patient oversight.
-
It’s very hard okay so if you do have that medical beneficiary number it’s super easy to make it look like you’re doing stuff
— Nick Shirley
- The lack of oversight facilitates fraudulent activities.
- One third of the hospices in America are located in LA County.
-
One third of the hospices in America are in LA County
— Nick Shirley
- The concentration of hospices suggests potential oversight issues.
- The distribution of hospices raises questions about healthcare quality in urban areas.
- Addressing hospice care fraud requires targeted policy interventions.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

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