Trump Administration’s Action Against Fraud in Los Angeles

The anti-fraud task force led by Vice President J.D. Vance is aiming to shut down numerous businesses in Los Angeles.

On March 16, President Donald Trump signed an executive order to create this task force. He mentioned it would offer advice to the president and coordinate efforts to eliminate fraud, waste, and abuse in government welfare programs.

“The American people deserve better than to be fooled by those who despise this country,” he stated.

The task force is collaborating with the Centers for Medicare and Medicaid Services (CMS) to identify and suspend hospice and home health care providers considered high risk.

Sources reveal CMS has already suspended 70 providers, with expectations that this number will rise significantly as the task force escalates its actions.

This latest move by CMS follows a crackdown in February aimed at addressing fraud and safeguarding taxpayers in Medicare and Medicaid. Health and Human Services Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz joined Vance in announcing a hold on $259.5 million in Medicaid funding in Minnesota due to fraud concerns. Additionally, CMS has temporarily paused new Medicare enrollments for certain durable medical equipment suppliers for six months.

The task force plans to leverage existing CMS templates, which include an internal fraud detection system powered by AI that can block or flag claims for review. Officials indicate that this system could be expanded nationally for a more effective eradication of waste and fraud.

A spokesperson for Vice President Vance expressed the administration’s commitment to combating misconduct, saying, “Americans shouldn’t be exploited by those who hate this country. The Fraud Elimination Task Force will ensure taxpayer-funded services are used properly, supporting hardworking Americans.”

This recent initiative by the White House comes after investigative journalist Nick Shirley uncovered a significant welfare fraud scandal in Minnesota. Reports suggest that Medicaid fraud in the state could amount to billions of dollars, prompting the task force to take decisive action.

Interestingly, there are concerns that similar vulnerabilities exist in states like California, Illinois, New York, Maine, and Colorado, where inadequate oversight raises the likelihood of extensive fraud.

Earlier this month, Shirley reported over $170 million in alleged fraud involving day care and hospice services in California.