Los Angeles’ top federal prosecutor has blown the whistle on “hundreds of billions” of alleged fraud taking place in California under Gov. Gavin Newsom.
Bill Essayli, the First Assistant U.S. Attorney for the Central District of California, unveiled the shocking accusation on Fox News Friday.
“I call him the fraud king for a reason,” Essayli said of Newsom. “He has reigned over billions and billions of dollars of fraud…it’s going to be into the hundreds of billions of dollars under his watch.
Essayli was responding to the recent arrest of eight people who were taken into custody during “Operation Never Say Die,” for allegedly scamming the nation’s health care system of more than $50 million. The defendants allegedly ran sham hospice facilities that recruited beneficiaries who were not terminally ill, according to federal officials.
He blamed Newsom for issuing the hospice licenses and not listening to the state’s auditor, who advised stronger oversight of hospice agencies in 2022.
“They’re supposed to have passed regulations by January 1st of this year that were called by the auditor in California, said California does not have sufficient regulations to crack down on fraud,” Essayli said. “He’s refusing to implement those regulations because he doesn’t want to own the problem!”
The top prosecutor said they’ll continue to go after hospice fraud in California.
“We’re going to do our job. You’re going to see a lot more fraud. We’re going to work hand in hand with this task force. And I think it’s going to be in the hundreds of billions eventually,” he concluded.
Essayli made similar accusations aimed at Newsom and California after the recent arrest of the alleged hospice fraud criminals.
“We want to be very frank about this, the federal government is the purse — all the money comes from the federal government, but it’s administered through the states,” Essayli said.
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“California is responsible for issuing hospice licenses. They’re responsible for regulating doctors and nurses, and the problem that you see in California is that there is no vetting and there’s no checking.”
Newsom’s office previously said they have been taking action for “years” on the hospice issue.
“Glad the federal government is finally stepping up to do their part,” they reacted to a federal anti-fraud task force’s actions in California. “State has been taking action for years, including suspending 280+ licenses & banning new licenses since 2022. Big question: Will Trump pardon any of them like he’s done for so many fraudsters before?”
The California Post reached out to Newsom’s office for comment.
