The leading federal prosecutor in Los Angeles has raised serious allegations about what he describes as “hundreds of billions” in fraud occurring in California, specifically under Governor Gavin Newsom’s administration.
Bill Esseri, the First Assistant U.S. Attorney for the Central District of California, made these alarming claims known during an interview. “There’s a reason I call him the King of Frauds,” Esseri remarked about Newsom. He emphasized that the issue of fraud is expanding rapidly, indicating that the total could reach the hundreds of billions mark while Newsom remains in office.
Esseri’s comments follow the recent arrest of eight individuals connected to a scheme that allegedly defrauded the U.S. healthcare system of more than $50 million through a fraudulent hospice operation. Federal authorities revealed that these suspects ran a bogus hospice to recruit individuals who were not actually terminally ill.
He further criticized Newsom for granting hospice permits and disregarding recommendations from the state auditor regarding stronger monitoring of hospice agencies. “The regulations were supposed to be implemented by January 1st, but California lacks the necessary regulations to effectively combat this fraud,” Esseri explained. “He refuses to enforce those regulations because he doesn’t want to confront the issue!”
Esseri made it clear that he intends to continue addressing hospice fraud in the state. “We’re committed to doing our job here. There’s going to be more fraud uncovered, and we’ll be collaborating with the task force. I believe, ultimately, that the numbers could reach into the hundreds of billions,” he concluded.
Similar accusations have been directed at Newsom after the arrest of a suspect involved in hospice fraud. Esseri pointed out, “Let’s be honest here: The federal government is where the money originates, but it’s managed at the state level.”
He stressed that California holds the responsibility for issuing hospice licenses and regulating healthcare professionals but noted the alarming lack of oversight in the state’s system.
In response, representatives from Newsom’s office have indicated they have been addressing hospice-related issues for years. They expressed satisfaction that federal authorities are now actively involved, highlighting that the state has taken measures in the past, including suspending over 280 hospice licenses and halting new licenses since 2022. There’s also speculation about whether President Trump might grant pardons to those involved, as he has with other fraud cases.
Efforts to obtain a comment from Newsom’s office regarding the recent claims have been made.
