Frustration Over Fraud Allegations in California

Jenny Ray Le Roux, a Republican candidate for Congress and Secretary of CAL DOGE, has voiced harsh criticism of Governor Gavin Newsom and Attorney General Rob Bonta. She claims they have failed to address significant fraud issues which her watchdog organization has recently uncovered yet, it seems, these incidents haven’t caught the attention of state leaders.

“It’s like living in an alternate reality with Newsom and Bonta,” Le Roux remarked. “When they assure us the fraud is under control, it really feels like they’re either involved or just giving up.” She added that there appears to be a lack of intent to act on these issues and it feels as if they are merely trying to change their narrative.

Republicans Critique State’s Handling of Hospice Fraud

California has recently become a focal point for allegations of widespread fraud. The Trump administration has allocated resources to investigate claims across various sectors, including healthcare and nonprofit organizations.

Sheila Clark, who leads a hospice advocacy group in California, testified that fraud within the hospice industry is alarmingly widespread. She questioned how numerous fraudulent operations manage to stay under the radar of state regulators despite obvious signs of wrongdoing.

“You’d be surprised at the number of hospices operating without supervision,” Clark stated. “I mean, you walk in and see piles of unopened mail—it’s clear no one’s monitoring the situation.” She expressed disbelief that many of these facilities passed inspections.

Le Roux accused some officials of facilitating what she termed “deliberate fraud,” suggesting that funds are being redirected towards political ventures. Her organization, Cal DOGE, aims to tackle waste and fraud in California, a mission it has pursued since its establishment in early 2026 by Republican gubernatorial candidate Steve Hilton.

According to their estimates, about $700 million has been lost to fraud and waste since they started tracking these issues.

“In just the last ten weeks, we’ve managed to collaborate better with volunteer groups since Newsom and Bonta assumed office,” Le Roux noted.

In response, Bonta’s office criticized Le Roux’s organization for expending its resources contesting actions taken by the Trump administration rather than addressing the fraud patterns it has identified through data analysis.

“Bonta’s office spends an enormous number of hours—over 150,000 a year—responding to Trump-era policies,” Le Roux explained, “which amounts to about 200 lawyers, almost one-sixth of his office’s budget. That’s a larger team than some areas of California’s Justice Department.”

Le Roux, who is related to Democratic Virginia Governor Abigail Spanberger, began her campaign in March for the Republican primary in California’s 47th Congressional District, with a specific focus on combating fraud.

She argued, “This isn’t a new problem. It’s business as usual. Newsom and Bonta, who were supposed to be investigating fraud, are the very ones who enabled it.”

As a specific example to illustrate systemic flaws, she pointed out a case involving $370 million in cannabis tax revenue. This money was supposedly funneled through intermediaries into unrelated programs, highlighting a lack of oversight.

“There’s zero oversight—no requirement for transparency regarding spending,” she claimed, leading to an estimated $80 billion annually lost to fraud and overpayments, which she believes is a systemic issue.

Le Roux suggested that stronger scrutiny could have prevented the ongoing fraud situations in hospices and criticized Newsom’s office for shifting responsibility to federal authorities.

“The hospice institutions we’re shutting down were state-licensed. They should never have opened in the first place,” she stated, emphasizing that the oversight was clearly inadequate.

Her organization is actively urging state officials to take a firmer stance against fraud. “Instead of aiding in meaningful reform, Newsom seems to be aiming to take credit for inactivity,” she said, a sentiment that resonates with many across the political spectrum.

She concluded by asserting that the issue of fraud is not confined to California; it’s a nationwide problem. “If money flows into California without checks, it’s a U.S. issue, not just a California one,” she added.

Fox News Digital has sought comments from the offices of Newsom and Bonta regarding these claims.

In light of recent criticisms, Newsom’s office has defended itself, stating that California is a leader in fraud prevention efforts, boasting significant wins in stopping fraudulent activities, including substantial arrests and a sharp reduction in EBT fraud.