‘Minnesota was big but California is even bigger’: Nick Shirley uncovers staggering alleged fraud right under Newsom’s nose

Journalist Nick Shirley uncovered more than $170 million in alleged day-care and hospice fraud in California, surpassing the scandal he previously exposed in Minnesota.

On Monday, Shirley shared a 40-minute video featuring him and his team confronting alleged fraudsters living in luxury at the expense of American taxpayers.

‘It’s like somebody took a motel building and turned it into a hundred fraudulent organizations.’

“Here is the full 40 minutes of my crew and I exposing California fraud, Minnesota was big but California is even bigger,” Shirley wrote.

“We ALL work way too hard and pay too much in taxes for this to be happening. These fraudsters have been able to defraud American taxpayers for years without any pushback from the public and politicians,” he continued. “It is time to EXPOSE IT ALL and end America’s fraud crisis.”

In the video, Shirley explained that California’s version of Medicare, Medi-Cal, has more than doubled from $108 billion in fiscal year 2022 to a proposed $222 billion in fiscal year 2026.

“One out of every 10 dollars of home health care in America is spent in Los Angeles,” Shirley stated. “It is estimated that the fraud in California could be in the hundreds of billions of dollars.”

Shirley and his crew stopped at several claimed day-care locations, including some homes in residential areas, that seemed to have no children present. In one instance, the team visited a supposed day care in an apartment complex, where they found two young children playing outside. The children informed them that no adults were present.

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Simone Lueck/Bloomberg via Getty Images

“The crazy thing is California allocates $6 billion to child-care and day-care facilities just like these, and there are over 39,000 facilities in the state,” Shirley said.

Shirley and his team also visited alleged hospice centers receiving millions of dollars in taxpayer funds. He explained that two of the facilities charged roughly $6,000 per beneficiary.

“It looks like there’s about 15 more hospice centers inside this one plaza we’re going to right now,” Shirley said.

He noted that some facilities had not even registered with the Centers for Medicare & Medicaid Services, suggesting they may be shell companies.

“It’s rumored that these are Armenian-Russian gangs,” Shirley said.

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PASCAL POCHARD-CASABIANCA/AFP/Getty Images

One of the hospice locations Shirley visited reportedly received roughly $1.3 million. However, the location was empty, with no employees or furniture inside.

“Not only are these shell companies, these are shell buildings,” an individual on Shirley’s team stated. “It’s like somebody took a motel building and turned it into a hundred fraudulent organizations.”

Shirley highlighted the luxury vehicles in the parking lot, including Mercedes, Teslas, and BMWs.

Shirley explained that fraudulent hospices collect taxpayer funds by obtaining Medicare beneficiary numbers from individuals and enrolling them in care without their knowledge.

“Must be very lucrative, because a lot of these businesses, these doors right here have nothing on them; all the blinds are turned out,” he said. “This is what you call welfare maxxing.”

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