California’s Fraud Issue Intensifies with New Legislation
California’s growing fraud dilemma is poised to escalate following Governor Gavin Newsom’s recent approval of a measure known as the “Stop Nick Shirley Act.” A prominent Republican has expressed intentions to challenge this legislation through a lawsuit.
Assemblyman Carl DeMaio, a Republican from San Diego, conveyed to Fox News Digital that the newly enacted law aims to hinder individuals from investigating scams related to government aid programs, claiming it violates First Amendment rights and is open to legal challenge.
The law, formally named “Privacy For Immigration Support Services Providers,” aims to establish privacy safeguards for entities offering immigration assistance and their staff, which includes protecting their addresses and penalizing those who publish their images online.
DeMaio pointed out that the measure effectively criminalizes the documentation of fraud involving taxpayer dollars by citizen journalists, undermining transparency.
Newsom, who is term-limited, signed the bill into law last week, with an effective date set for October 1.
DeMaio stated that he, along with a coalition focusing on civil liberties, is preparing to file a lawsuit against the law. “We have a plaintiff and are putting together the legal briefs,” he noted, emphasizing the impending legal action.
He also expressed hope that the U.S. Department of Justice would intervene in the case, labeling the legislation as a clear infringement on First Amendment rights.
DeMaio compared California’s fraud issues to the well-publicized fraud in Minnesota, suggesting that what happened there seems trivial in comparison. Videos by Nick Shirley, who investigated daycare centers in the Minneapolis area, showcased facilities that supposedly had no children despite receiving substantial federal funding.
“If you’re concerned about Somali daycare centers in Minnesota not having children, consider California’s NGOs receiving taxpayer money while failing to provide actual services. They’re organizing rallies, managing ballots, and supporting candidates, essentially acting as an arm of the Democratic Party,” DeMaio explained.
He added that they have communicated with the Justice Department’s Office for Civil Rights and developed a strategy for moving forward in court to contest this law.
DeMaio referred to Newsom as a “bully,” highlighting that the governor, who will exit office in January and may run for president in 2028, is attempting to suppress citizen watchdogs who expose governmental fraud.
Newsom’s spokesperson, Diana Crofts-Pelayo, dismissed DeMaio’s claims, asserting that the law is unrelated to Shirley and accusing Republicans of fabricating conspiracy theories or misinterpreting the law. She maintained that the legislation does not impede Shirley’s journalism efforts.
Nonetheless, previous statements from Newsom’s office labeled Shirley’s work as “grifting” and “lying,” insisting there is no concealment of fraud within the administration.
