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California is repaying $1.6 billion previously charged to the federal government for health care services provided to illegal immigrants, and a larger program integrity issue is claimed to exist in the state’s health care system. The speaker instructs Governor Newsom to produce within three weeks a comprehensive program integrity action plan to address major fraud. Three examples of alleged embarrassing fraud in California are highlighted: 1) In-home supportive services (which California shares with Minnesota) include personal care such as bathing or grooming, household tasks, cleaning and cooking, shopping, and transportation. These are tasks that families could perform, but government funding is said to have generated significant cash for unethical people. California spending for these services increased from eight to twenty-eight billion dollars over the past decade, with a claim that federal taxpayers are paying 250% more for California, an affluent state, and that the program is still growing by double digits annually. 2) In 2024, spending for home health care in California purportedly rose by more than 21%, representing the largest growth rate for any major health category nationwide. The number of home health agencies in California reportedly almost doubled between 2019 and 2024. Los Angeles County alone is said to account for $1.4 billion, representing almost 9% of total fee-for-service home health spending for the entire country, despite having just 2% of national enrollment. The assertion is that this concentrates home health funds in L.A. County, limiting access for other Americans who could benefit from these services. 3) The 2022 California state auditor report is cited as showing that the number of hospice agents in Los Angeles County increased by 1,500% since 2010, a growth rate that allegedly far exceeds the 40% increase in the senior population over the same period. The speaker questions how a sevenfold increase in hospice could be defended, noting reports from seniors who claim they were duped by fraudsters and that California is not stopping these criminals. The speaker reiterates that Governor Newsom’s deadline for a comprehensive program integrity action plan is approaching and urges action to save American lives rather than enabling criminals.

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The speaker claims there is $14 billion in fraud related to people wrongly enrolled in Medicaid in multiple states. They state that people living in one state may move to another, and both states collect Medicaid money from the federal government. The speaker adds that sometimes people are enrolled in both Medicaid and exchanges within the same state, contributing to the $14 billion figure.

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CCAP is a $34 million state program aiding over 12,000 low-income families monthly. Concerns about oversight led to investigations into daycares receiving significant funding despite safety violations. Quality Learning Center in Minneapolis had 95 violations from 2019 to 2023, including hazardous items accessible to children. It received nearly $8 million since 2019, despite being placed on conditional licensing. Similarly, Minnesota Child Care Center had 36 violations and received $11.5 million since 2018, with no apparent staff or children present during visits. DHS stated they can only stop payments under specific conditions. Investigations are ongoing, with 62 active cases related to CCAP. Lawmakers are pushing for deeper inquiries into the program and its funding practices.

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Abdi, running for Minnesota House District 14A, owns Blooming Kids Child Care. The speaker highlights a long list of alleged violations at Blooming Kids, including: - No first aid kits - Unsanitary conditions - Not complying with CPR regulations - No supervision for the kids - Not operating within the terms of their license - Never submitted their DHS background study when requested - Children subjected to prohibited disciplinary actions - No furnishings, no equipment, no materials, and no supplies - No documents to show that the teachers were qualified to do the job - Repeated violations: same violations happen over and over - No immunization records for any of the children - Not enough staff The speaker notes they cannot determine how much state or federal funding Blooming Kids receives because that information requires access they don’t have. Regarding campaign fundraising, the speaker checked Abdi’s campaign donations and states he is not getting any from any day care centers. The speaker concludes by asking someone to tag Nick Shirley, suggesting he should look into this issue as well.

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The speaker criticizes Maine Community Foundation for distributing funds intended for mass shooting survivors in Lewiston into ways that did not benefit those affected. They claim money has gone directly to Africa to fund weapons of war and that the portion retained in the Lewiston community has not benefited anyone who was present the night of the shooting. They state they first wrote to Council President Chitum in March about how Gateway Community Services used funds that were never intended for them, a point reportedly covered by the Main Wire at the time. The council president has since publicly aligned with a local consultant who had a major role in the fund distribution, which the speaker characterizes as an allegiance to someone other than constituents. Lewiston Auburn Youth Network (LAYN) is named as another nonprofit that received mass shooting funds. The speaker notes that LAYN previously claimed to be located at 210 Blake Street and even asserted they operated inside a condemned building. When the speaker emailed concerns about LAYN, Chitam (Chidam) responded that they do very good work, but the speaker reports they cannot find video or photographic evidence of such work. Chidam reportedly declined to respond to a later email seeking specifics about LAYN’s work or what was done when inspecting their listed location, which the speaker says did not occur. Gunfire data from the community is presented: 36 confirmed instances in 2023, 36 in 2024, and 37 so far this year. The speaker notes these figures exclude unconfirmed gunfire sounds frequently heard by residents. The speaker lists several agencies—Generational Newer Lewiston Auburn Youth Network, Mirrors if Got Community Services, AK Collaborative Empowered Immigrant Women Unite New Mainers Public Health Initiative, and Somali Bantu Community Association—as having received portions of the mass shooting donations after writing to the committee about how their clientele fled war and violence and were traumatized. The speaker observes that some of these same agencies stood with the police at multiple community forums aiming to curb gun violence over the years, and notes that gunfire in the streets has literally increased since they received money. The speaker urges the community to reflect on this. As Maine’s nonprofit fraud situation grows, the speaker says it rivals what’s seen in Minnesota and again asks Lewiston City Council to use all available powers to make right the re-victimization of families when money donated for mass shooting relief was distributed to unrelated agencies that used the tragedy as a personal money grab.

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The investigation highlights potential fraud or serious irregularities in Somali daycare operations, based on observed signs such as windows not covered with vinyl and a lack of signage or children visible at purported day care locations. The team questions the existence of many day cares, noting that some places listed as licensed have no identifiable activity or occupants when visited. Speaker 2 argues that even if a daycare were legitimate and serving only two children, there is “no world” where the government should be giving almost a million dollars or three-quarters of a million dollars in subsidies to such a place. The discussion underscores how fraudulent claims can be made easily and points to a lack of visible accountability in the system. The agency responsible for overseeing and funding daycares is identified as the Washington State Department of Children, Youth, and Families, with Secretary Tana Sen named as the head of the agency being discussed. To contact leadership, the team attempts to reach the communications department led by Nancy Gutierrez, noting repeated efforts to obtain comment about suspicious Somali daycares. They report multiple attempts to call and email, with messages indicating that some numbers are unavailable and voicemails are full. Speaker 0 notes the difficulty in getting a response from DCYF’s top communications official, emphasizing that their mailbox is full and no responses have been received. This lack of contact is framed as convenient for avoiding questions about the alleged issues. Speaker 6 states that if fraud is confirmed, a forensic audit should be conducted to trace how much money was actually spent and to recover any funds. Speaker 7 suggests that, even in the best-case scenario, the situation is inefficient and a waste of taxpayer dollars. Speaker 8 adds that there is a prevailing attitude in Olympia that does not recognize the problem.

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Prosecutors have identified billions in Medicaid fraud across 14 programs, and researchers have now found a fifteenth area: assisted living. In Minnesota, the assisted living program is expanding faster than other programs, with payments rising 10 to 15 times as fast. Data on area facilities show Minneapolis has 169, Saint Paul has 83 (population 307,000), Brooklyn Center has 106 (pop. ~30,000), and Brooklyn Park has 181 (pop. ~84,000), highlighting a higher concentration of facilities in smaller cities. The assisted living facility in question is housed in what appears to be a single-family home, yet it bills itself as an assisted living facility and receives substantial state funding. The facility is owned by Gandhi Mohammad, now Gandhi Abdi Qadai, through his LLC, and his wife runs the assisted living services. The state continues to pay while he awaits trial. The report notes that this man was indicted in the Feeding Our Future scam, which involved false billing, and asks why he is still receiving state funds through these facilities. Speakers discuss whether Feeding Our Future indictments should trigger a cross-check to prevent individuals involved in that scheme from receiving other state funds. One speaker asks, “Do you know the Feeding Our Future scandal?” and notes the lack of awareness among people being interviewed. It is stated that the man who owns the building was indicted in Feeding Our Future, and that his shell company was used to purchase a new assisted living facility property, with his wife operating the service provider side. The facility received over 2,300,000 in state money last year, and a Minnesota reformer article claims the person has been paid 49,000,000 since 2016. The interviewees question how it is possible that someone indicted in Feeding Our Future is still collecting checks from the state through these assisted living centers run by his wife. State Representative Kristen Robbins, chair of the House Fraud and Oversight Committee, expresses concern that basic due diligence was not performed to cross-check Feeding Our Future defendants against other state funding. The parties reached out to the man and his wife but have not heard back. They also contacted the Department of Human Services, which stated that they cannot cut funding from this person because he is “simply a landlord,” with his wife running the service provider arm of the facilities. The department’s position is described as passing the buck.

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Speaker 0 raises the issue of leadership in Minnesota, noting that dozens of people have been charged and convicted for stealing millions of taxpayer dollars from government programs. The question is whether Governor Walls did enough to stop the fraud in the state, and whether Speaker 0 supports Walls’ decision not to run for reelection. Speaker 1 responds by crediting Governor Walls with achievements: Walls is the reason Minnesota has paid family leave and free school lunches. He notes that they have been through thick and thin together. Regarding fraud, Speaker 1 concedes that obviously everybody could have done more to prevent fraud, and he says that is a fair point to make. He points to current efforts, stating that Walls is setting up a whole bunch of infrastructure to do that. He affirms that the fraud is real and that it must be acknowledged. In terms of accountability, Speaker 1 emphasizes that when somebody commits fraud, there should be investigation, charges, prosecution, and, if appropriate, jail for the individual. He stresses that you do not hold an entire community accountable for the actions of individuals.

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There's significant fraud in USAID, with radical groups receiving funds they don't deserve. A staggering amount, like a hundred million, is being misallocated. It's crucial to investigate the kickbacks associated with this spending. Who would invest such sums in questionable projects? It's likely that those who received the funds are not returning any to the government, indicating a high level of corruption. The key issue is understanding the extent of these kickbacks.

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The speaker describes a pattern of fraud concentrated in clusters rather than in isolated, large-scale operations. The fraud appears to occur within family groups or tightly connected networks, spreading across multiple small sites rather than a single, massive operation. These clusters involve using single apartments, single condos, or potentially a single-family home outside of Boston, effectively creating numerous small daycare facilities. The speaker notes that the capacity of these clusters is not as high as it might be in other regions (e.g., Minnesota). As a result, fraud operates at a large number of smaller sites rather than a few large ones. The implication is that there may be more individual perpetrators overall, but each site commits fraud on a smaller scale. This distributed approach contrasts with a hypothetical scenario in which one building or site would generate a multi-million-dollar fraud; instead, the speaker expects many buildings each contributing smaller amounts, culminating in a broader spread of fraudulent activity. A key factor driving this pattern is the very low barrier to entry for opening a daycare, which facilitates a large number of potential operators and, consequently, a higher overall opportunity for fraud. The speaker emphasizes that this low barrier makes it easier for fraudulent actors to multiply across numerous small locations, contributing to a wide but shallow trafficking of schemes. The speaker explains the financial impact and mechanism of the fraud: the state is subsidizing payments for these kids, but the fraud involves both the daycare and the parents allegedly claiming that children attend the daycare when they do not. In reality, the parents certify attendance, while the daycare providers and the parents are allegedly splitting the subsidized funds. As a result, taxpayers bear the burden of subsidizing services that are not actually being provided to the claimed attendees. In summary, the described fraud occurs in clustered groups, leveraging many small daycare operations (often housed in single residences) with a very low entry barrier, leading to widespread but not individually vast fraud. The purported scheme involves falsified attendance to obtain state subsidies, with the daycare operators and some parents allegedly sharing the ill-gotten funds.

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Speaker 0: Massive fraud is going on here in the state of Minnesota, especially in Minneapolis. Explain to me what's going on with the day cares. Speaker 1: One of the things I've noticed is there’s an exceptional number of childcare centers set up mostly in Minneapolis, but also in Saint Paul. I wondered how many kids are there in the Twin Cities. I visited facilities near my office and saw there aren’t any kids there. I’d go to another one and there aren’t any kids there either. I spoke with someone outside who said, “We’re all full,” yet when I looked inside the door was open and there was a couch and a table with a couple chairs and no kids. I asked if the kids were outside playing or what kind of place this was, and the staffer said, “You go,” and followed me down the street to my car. That made me think something was going on, and this was maybe five years ago. Speaker 1: This fraud is so massive. When the dust settles on this, it’s going to be found to be the largest fraud in the history of the country and probably the world. The ones I’ve gotten data on average about $2,500,000 a year, and a lot of them will say they have anywhere from 80 to 120 children. Speaker 1: I’ve been to literally 40 or 50 of these childcare centers, and there never has been a single child at any one of them ever. Morning, afternoon, evening. Some say they’re open till 10:00 at night. I go there in the morning, I go there in the afternoon, I go there at 9:00 at night. Nobody. There are no kids there ever.

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The speaker was asked if there is evidence that Maxine Waters, Adam Schiff, and Chuck Schumer have received money directly from USAID. The speaker responded that taxpayer money is sent to government organizations, then to NGOs, which are government-funded but not governed by U.S. laws. Money is sent overseas to NGOs and the speaker is confident that some of it returns to the U.S. and ends up with the aforementioned politicians. The speaker states that it's not a direct route, but that some members of Congress are strangely wealthy, accumulating millions while earning significantly less annually, which is unexplainable. The speaker says they are going to try to figure it out and stop it from happening.

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Speaker 0 accuses Minnesota of fraud on visas and their programs, asserting that 50% of them are fraudulent. They claim that Governor Walls is either an idiot or acted on purpose, describing him as bold for allegedly bringing people into the state illegally, who allegedly never should have been in this country, and who were said to be somebody they are not. The speaker contends that these individuals claimed to be married to someone who was really their brother or some other relation, and that fraudulent visa applications were signed up for government programs. They further assert that these actions resulted in hundreds of billions of dollars being taken from taxpayers. The speaker declares they will remove these individuals and recover the money, and that in the next year they will ensure that only people in leadership positions in the country who love this country are placed in those roles.

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Taxpayer money is sent to government organizations, then to NGOs. If it's a government-funded NGO, it's effectively just the government. A fraud loophole exists because the government can send money to an NGO that is no longer governed by U.S. laws. The money is sent overseas to one NGO, then through others. The speaker is highly confident that some of that money returns to the U.S. and enriches certain people. There are strangely wealthy members of Congress, and it's unclear how they accumulated millions while earning comparatively little. The speaker aims to investigate this and prevent it from continuing.

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The speaker argues that fraud and improper funding in Minnesota were not the result of isolated actions but involved coordination or complicity across multiple state agencies responsible for oversight. Five agencies are identified as responsible for fraud oversight and funding distribution, and the speaker asserts they should have detected the issues but did not. - Attorney General: Keith Ellison is named as having ties to the Muslim Brotherhood and as someone who “placates to the Somali populations for the votes,” with the speaker pointing to his district (District 5) as context for these claims. - Minnesota Department of Human Services (DHS): Shireen Gandhi is described as the temporary commissioner at the time of the discussion. Jodi Harpstead is noted as having left the position in early 2025. Harpstead’s prior background is highlighted: she took over in February 2019, and before that she was the president and CEO of Lutheran Social Services of Minnesota (LSS), an organization described as heavily involved in refugee resettlement and associated with relocation to areas with access to social programs. - Office of the Inspector General: James Clark is mentioned in connection with oversight. - Bureau of Criminal Apprehension (BCA): Drew Evans is identified as the superintendent, overseeing investigations into financial crimes and state program fraud. The speaker expresses a desire for raids by DOJ or FBI or other responsible entities to target these offices, suggesting that such actions would yield more findings. - Office of Legislative Auditor: Described as responsible for identifying fraud risks in state agencies and programs. - Minnesota Management and Budget (MMB): Erin Campbell is the commissioner, with a role focused on internal controls, financial operations, and fraud risk management. The speaker asserts that all five agencies should have detected the fraud but did not, claiming they were complicit. In addition, there is a call for federal investigations (DOJ, FBI) targeting these offices to uncover further activity. The discussion also links Jodi Harpstead’s leadership history to DHS and references Harpstead’s prior role at LSS, noting LSS’s involvement in refugee resettlement in Minnesota. Overall, the content presents a narrative of cross-agency responsibility for fraud oversight, highlighting specific individuals and alleging motives and ties, while urging external investigations to reveal additional findings.

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The speaker asserts that fraud has been legalized and concealed through unethical behavior enabled by unethical legislation, effectively allowing the fraud to go unseen, untracked, and without accountability. The speaker highlights Nexus Family Healing, a nonprofit located in Plymouth, Minnesota, as an example. According to the speaker, Nexus Family Healing is a national nonprofit with an executive director earning well over $500,000 annually, who is awarded a $1,000,000 grant contract through Hennepin County. The speaker then alleges that this $1,000,000 grant morphs into a three-year $7,000,000 ongoing contract, and claims that nobody knows how or why this transformation occurs. The speaker notes that when Hennepin County workers approached Julie Blaha in the state auditor’s office with concerns, they were met with “complete radio silence.” The speaker contends that Julie Blaha refuses to take action. The claim is made that the state auditor’s office is currently opaque, with no visible duties, no responsibility, and no accountability arising from that office. The speaker adds that the office receives $8,000,000 in biannual funding, yet allegedly does nothing beyond purported TikTok dances. The overarching claim is that there needs to be someone in the state auditor’s office who actually takes responsibility for how taxpayer dollars are managed and accounted for. The speaker uses these points to argue that the current system enables undisclosed or unaddressed fraud through a combination of perceived legislative loopholes and a lack of oversight or action from the state auditor’s office. The narrative centers on alleged improper contracting and funding flows involving Nexus Family Healing, and the perceived non-responsiveness of Julie Blaha and the state auditor’s office in the face of county concerns about these matters.

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Speaker 0 reports on data gathered from red states to understand program integrity and fraud patterns. The findings include 200,000 dead people or individuals using dead people’s Social Security numbers. Additionally, half a million people are receiving benefits at more than twice the amount they should be receiving. The data also shows a case of a single individual receiving benefits in five states. Speaker 0 notes that these are results from the red states, which typically have smaller programs and tighter accountability and control. Speaker 0 contrasts this with blue states, which sued and are in ongoing litigation; these states do not want California or New York to turn over data to help root out fraud. The Minnesota aspect of the situation is described as remarkable and has been a focus of coverage. The overall message is that legal action is underway, and the speaker emphasizes a commitment to public funds and to the people who actually need these programs. The team intends to remain in court and work hard to ensure the protection of the American taxpayer and the beneficiaries of the programs.

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It's the morning of March 15, and the report centers on a tip about a man leaving the country with a carry-on bag packed with a million dollars in cash. Sources say he just cleared security with that bag, and that such cloak-and-dagger scenarios now happen almost weekly at MSP International. The money is usually headed to the Middle East, Dubai, and beyond, with sources claiming that last year more than $100,000,000 in cash left MSP in carry-on luggage. The reporters say their main interest is where the money is going. The national go-to expert cited is Glenn Kearns, a former Seattle police detective who spent fifteen years on the FBI’s Joint Terrorism Task Force before retirement. Kearns is described as having tracked millions of dollars in cash leaving on flights from Seattle, money that came from hawalas—informal networks used to courier money to countries with little or no official banking system. Some immigrant communities rely on hawalas to send funds to relatives back home. Kearns discovered that some of the money was being funneled to a hawala in a region of Somalia controlled by the Al Shabaab terrorist group. The narrative then shifts to a claim that the money transfers are connected to welfare fraud, specifically day care-related fraud. The reporters note that to understand the link between day care fraud and the surge in carry-on cash, one must look at the history of the crime in Minnesota. Five years earlier, Fox 9 investigators reportedly first reported that day care fraud was rising in Minnesota, exposing how some businesses were gaming the system to steal millions in government subsidies meant to help low-income families with childcare expenses. The transcript explains the day care fraud scheme: centers sign up low-income families that qualify for child care assistance funding. Surveillance videos from a case prosecuted by Hennepin County show parents checking their kids into a center only to leave with them a few minutes later, or sometimes with no children at all. In any case, the center would bill the state for a full day of childcare. The report highlights this as a significant mechanism by which funds were diverted, tying it to larger issues of cash being moved internationally via hawalas and used to support illicit networks.

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The speaker was asked if there is evidence that Maxine Waters, Adam Schiff, and Chuck Schumer have received money directly from USAID. The speaker responded that taxpayer money is sent to government organizations, then to NGOs, which are government-funded but not governed by U.S. laws. Money is sent overseas to NGOs and the speaker is confident that some of it returns to the U.S. and ends up with the aforementioned politicians. The speaker states that it's not a direct route, but that some members of Congress are strangely wealthy, accumulating millions while earning salaries of only around $200,000 per year. The speaker says they are going to try to figure it out and stop it from happening.

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First class plane tickets, luxury cars, fine jewelry, all these lavish things allegedly bought by Minnesota fraudsters with taxpayer money intended for hungry children. New documents obtained by NewsNation show hundreds of millions of dollars worth of funds were spent in the fraud scheme engulfing Minnesota’s social services programs, prompting an investigation by the House Oversight Committee. The committee’s chairman, congressman James Comer, told NewsNation he thinks this could potentially be an organized scheme expanding beyond Minnesota. Speaker 1 also suggested that this is happening in other states with other social programs and other groups. Rich McHugh, reporting for NewsNation, noted that the new documents reveal how millions of dollars of taxpayer funds built from Minnesota’s welfare scandal were spent, with the indicted individuals “living large” and “burning large amounts of cash.” According to the coverage, when the indictments were first announced in September 2022, the revelations were shocking even then. The reports describe purchases of houses in Minnesota, resort property, and real estate in Kenya and Turkey, as well as luxury cars, commercial property, jewelry, and much more. A Maldives honeymoon is described as part of the lifestyle, and there was footage of the group popping champagne. The documents show investments in waterfront properties and real estate—“entire buildings in Kenya”—as well as Porsches. The scammers were young and reportedly very wealthy, texting each other images and messages, including “a box full of cash” valued at a quarter of a million dollars, and a note saying, “you are gonna be the richest 25 year old, inshallah.” They wired millions to China and to Kenya, and one text reportedly said, “please send 1,000 to Mogadishu Baccarat,” which appears to reference a market in Somalia once controlled by Al Shabaab, the site of the 1993 Black Hawk Down incident. Treasury Secretary Janet Yellen (Treasury Secretary Scott Besson is referred to in the transcript as the speaker) said they are investigating and will try to find any links of this money going to Somalia and to Al Shabaab, and they plan to look at more scrutiny on all monies going back to Somalia. The report emphasizes that this investigation is just beginning, with ongoing scrutiny and potential broader implications beyond Minnesota.

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The speaker outlines several policy and oversight actions within HUD and related agencies. First, they assert that non-permanent residents are no longer eligible for FHA insured mortgages, and that public housing authorities are being audited to ensure taxpayer dollars do not support illegal aliens, insisting that “American dollars should benefit American citizens and American citizens only.” Despite these emphasis on restricting benefits, the speaker notes that HUD previously provided a pathway for home ownership and supported housing affordability for more than 1,000,000 Americans through FHA and Ginnie Mae, highlighting the agency’s impact in expanding access to housing and affordability. On stewardship and accountability, the speaker emphasizes a strong focus on cracking down on waste and fraud and abuse. They cite findings from the office of the chief financial officer (CFO) regarding potential financial issues: more than $5,000,000,000 in potential payment errors and over $50,000,000,000 in total rental assistance for fiscal year 2024. They also point to a specific problem within that broader amount: money that went to nearly 30,000 dead people. The speaker characterizes these financial findings as ludicrous and unacceptable, stating that such issues are a violation of the sacred trust with American taxpayers. They assert that the problem “has to end, and it will,” signaling a firm commitment to ending waste, fraud, and abuse and to restoring confidence in the management of housing programs and related federal dollars.

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In Los Angeles, there are 42 hospices within a four-block radius, with Cyrillic and Armenian/Russian writing on buildings and little visible patient care activity. A major case involved $16,000,000 stolen, with the main organizer going to jail for two years. The area had an apparently empty hospice center and claimed services for people at home that were not actually provided. The speaker asserts roughly $3.5 billion in fraud is taking place in Los Angeles hospice and home care, run largely by the Russian Armenian mafia. The narration notes the presence of language and dialect behind the speaker as indicative of this organized crime. The operation allegedly recruited hundreds of doctors to write false prescriptions and paid or tricked 100,000 patients into giving them their beneficiary numbers to perpetuate the fraud. Criminals allegedly run the organization and quickly evade when law enforcement prosecutes them. California has not given much attention to these problems, but that is changing, according to the speaker. The US attorney and FBI are now focused on the issue in a state with about $30,000,000,000 worth of home and community-based services, most of which, the speaker claims, might be fraudulent. The statement concludes that the President is not going to tolerate this anymore.

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HHS Deputy Secretary Jim O’Neill and HHS Assistant Secretary for the Administration for Children and Families Alex Adams discuss concerns about political patronage in Minnesota, alleging that incompetent state officials have allowed taxpayer money to be diverted to politically connected cronies. They claim state officials have been unwilling to confirm the size and scope of fraud, and assert that Governor Walz’s administration is diverting resources from working families to fake day care scams. They emphasize that raising a young family is challenging and that many families rely on state and federal assistance for affordable child care. They state that fraud is not victimless and that every dollar stolen is taken from children and families who need these services. They argue that Washington policies influence how states administer programs and can either prevent or invite fraud. They assert that the Biden-Harris administration adopted Child Care and Development Fund rules that created vulnerabilities, weakening accountability and making fraud easier. Consequently, they say a proposed rule has been released to repeal those Biden-era mandates. The proposed rule is described as having three important elements. First, it ends the requirement that taxpayer dollars must pay for child care before services are provided, so states will no longer be forced to send payments to providers upfront. Second, it ends the enrollment-based billing mandate, allowing payments to be based on verified attendance rather than enrollment alone, so providers cannot bill for children who never show up. Third, it ends the mandate to pre-fund guaranteed seats at childcare centers without competition, thereby restoring parental choice and bringing back market incentives that reward legitimate, high-quality providers. Taken together, the changes are said to ensure that payments reflect real services and real attendance, making it far harder for fraudulent or nonoperational centers to game the system. The speakers claim that Biden administration policies effectively backed up a Brink’s truck and sent the security home across welfare programs, and that in childcare, this ends today. Produced by The U. S. Department Of Health And Human Services.

Philion

It’s So Over For Minnesota..
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A sweeping look at a wave of fraud investigations centered on government-funded programs reveals deep concerns about accountability and risk across states. The episode traces high-profile cases in Minnesota and Maine where decades-long patterns of misreporting, overbilling, and misuse of public funds prompted federal scrutiny, state audits, and abrupt pauses in services. The reporting highlights how complex welfare and health programs created fertile ground for manipulation, involving nonprofit contractors, staffing firms, and local politicians who appear to have benefited from or overlooked irregularities. The coverage underscores the tension between necessary enforcement and the potential disruption to disabled individuals and vulnerable communities who rely on essential services, as political figures, media narratives, and whistleblowers shape perception. The piece argues that robust vetting, clearer oversight, and decisive consequences are essential to restore trust and ensure that funds reach their intended beneficiaries rather than entrench fraud. By connecting local investigations to a broader national pattern, the episode invites listeners to consider how governance, transparency, and accountability can be strengthened in public programs. The inquiry also examines how national figures and media reframing shape response, raising questions about due process.

Modern Wisdom

Inside Minnesota's $10B Childcare Fraud Scandal - Nick Shirley
Guests: Nick Shirley
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Nick Shirley’s interview with Modern Wisdom unpacks a volatile, rapidly evolving fraud scandal centered on Minnesota’s childcare funding, revealing a widening web of alleged misappropriation that has drawn national attention. Shirley describes weeks of investigative work that began with local daycare sites and expanded into larger networks involving adult daycares, autism centers, and transportation providers. The conversation traces how government subsidies intended to support child care became a vehicle for financial manipulation, with the Minnesota Department of Human Services and federal funding streams misfired by opaque oversight, enabling a pattern of overpayments, phantom services, and cash-based payrolls. Shirley and his collaborator, identified as David, gathered documents, testimonies, and on-the-ground observations, culminating in a viral video that sparked immediate policy responses, including funding freezes and investigations by federal authorities. The episode foregrounds the human and institutional toll: how families seeking legitimate care faced disruption as authorities attempted to halt fraudulent payments, while legitimate operators worried about ensuing scrutiny and compliance burdens. The hosts reflect on the broader implications for governance, media, and public trust, acknowledging the tension between aggressive fraud-busting and safeguarding access to essential services. The discussion also delves into the media landscape of citizen journalism, the challenges of fast-moving investigations, and Shirley’s decision to prioritize verifiable information, security concerns, and accountability as the story escalated to the national stage. As the episode closes, the guests anticipate ongoing part two coverage, promising deeper dives into transportation schemes, interagency coordination, and potential cross-state fraud patterns, while weighing the societal costs of dramatic reform and the prospects for genuine improvements in program integrity and public confidence.
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