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Conservative 'Empire of Fraud' Charge Against Newsom Doesn't Stick

  • Estimates suggest fraudsters and organized crime rings have stolen at least $180 billion from California taxpayers under Governor Gavin Newsom, with critics alleging this looting spans unemployment, welfare, and healthcare programs.
  • California's state Medicaid program, Medi-Cal, reportedly loses $50 billion annually to fraud, and state auditors have repeatedly designated welfare programs as "High Risk" due to weak oversight and inadequate safeguards.
  • Former chief of staff Dana Williamson was charged in November 2025 for allegedly siphoning COVID-19 recovery funds, while other schemes involved exploiting the Electronic Benefit Transfer system with organized rings tied to Romania.
  • On March 16, President Donald Trump signed an executive order creating the Task Force to Eliminate Fraud, led by Vice President J.D. Vance, to coordinate government-wide efforts against benefit program abuse.
  • Newsom's office dismissed the claims as "ridiculous" and denied missing homelessness funds, though critics argue the systemic issue persists, diverting billions from those most in need.
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14 Articles

City JournalCity Journal
Reposted by
Christopher F. RufoChristopher F. Rufo
Right

Gavin Newsom’s Empire of Fraud

California has lost at least $180 billion to fraud, according to officials and experts.

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Bias Distribution

  • 72% of the sources lean Right
72% Right

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City Journal broke the news in on Wednesday, April 1, 2026.
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