Fraud Schemes Linked to Biden’s Policies

As fraudulent activities surge nationwide, advocates for economic freedom at the state level are pointing fingers at former President Joe Biden’s administration, suggesting that his policies played a crucial role in this rising issue.

O. J. Oreka, the CEO of the National Treasurer’s Foundation, stated that “lax regulations” from the previous administration facilitated extensive fraud and misuse of taxpayer funds. Now, state treasurers are pushing for increased oversight to ensure funds are managed properly for the Americans.

“This isn’t a partisan comment, but it’s true that these issues have escalated during the Biden administration,” Oreka mentioned. He noted that many regulations have been relaxed, allowing states that believe in greater government intervention to grant easy access to benefits.

At a recent SFOF annual conference in Clearwater, Florida, he expressed that fraud has become so embedded in government programs that it’s now considered “a feature of the system, not a bug.”

In a report from SFOF regarding oversight efforts in 2025, it was revealed that state finance officials returned $28 billion to taxpayers last year while uncovering an additional $5.7 billion in waste and fraud. Moreover, they generated an extra $22.3 billion through investment income and unclaimed property initiatives.

“We’re highlighting the existence of a fraud industry in this country,” Oreka stated, calling efforts to eliminate this fraudulent complex within government programs a significant challenge.

He pointed out that weak eligibility requirements, or sometimes a complete lack, have led to a spike in fraud occurrences during Biden’s term.

“This has made benefits available to nearly anyone, including those who shouldn’t have access or don’t qualify,” he added with concern.

This year, President Donald Trump appointed Vice President J.D. Vance to spearhead a nationwide “war on fraud,” focusing on cases like Minnesota’s controversial “Feeding Our Future” initiative, which allegedly defrauded the government of hundreds of millions.

Oreka commended the Trump administration’s anti-fraud measures, noting that in a letter to the White House, he informed Vice President Vance that SFOF members are already active participants in the fight to safeguard taxpayer dollars.

“What’s encouraging right now is that the vice president, the task force, and state treasurers are all invested in solving this issue,” he explained. “The objective is to eliminate fraud entirely, revitalizing a benefits system that serves the American populace effectively once again.”

However, Oreka emphasized that ongoing efforts will be necessary from future administrations to maintain any meaningful change.

Oreka expressed that SFOF is collaborating with congressional representatives, including House Oversight Committee Chairman James Comer (R-Ky.), to ensure efforts against fraud extend beyond just the current administration.

He also hopes that certain reforms might endure through executive actions.

“Our system enables unethical practices, which have notably surged during the Biden era,” he remarked.

Recent large-scale fraud incidents have emerged in states like California, Maine, and Ohio, with some Democratic leaders attributing the lack of action to insufficient political motivation to combat fraud.

A multimillion-dollar hospice fraud plan was unveiled in California, while in December, a whistleblower revealed that a healthcare provider in Maine misappropriated millions in Medicaid funds. In Columbus, Ohio, numerous home health care companies sharing the same address were found to have fraudulently billed over $250 million in Medicaid expenses.

Oreka reiterated the widespread nature of this fraud issue, mentioning incidents in various states like Minnesota, California, Maine, and Ohio. He highlighted the coordinated efforts by national financial officials, alongside various state leaders, to advocate for the American public.

Oreka firmly believed that taxpayers should not bear the loss caused by these fraudulent actions. “As long as the system gives out money to those who don’t deserve it, the average American won’t reap the benefits,” he said.

He argued that combating fraud is also about reducing costs for citizens. “Our discussions weren’t only focused on fraud; it was about leading the charge to make life more affordable for Americans,” he noted, adding that the overall atmosphere of the conference felt promising.

Fox News Digital has reached out to Biden’s office for a comment.