Trump Says California Is Full Of Fraud. Bonta Says The Claims Are 'reckless' - Beritaja

With the Trump management reportedly successful talks to create an anti-fraud task unit for California, authorities Atty. Gen. Rob Bonta connected Thursday vehemently denounced what he described arsenic the administration’s “reckless” and “false” rhetoric about fraud plaguing the state.

At a news convention astatine the Ronald Reagan State Building successful downtown Los Angeles, Bonta said the Trump administration’s claims that authorities programs are overrun by fraud and that its authorities was itself perpetrating aliases facilitating this fraud was “outrageous and ridiculous and without basis.”

Bonta said about states struggle pinch immoderate fraud from extracurricular actors, saying that “anywhere there’s money flowing there’s a risk” and that the state’s Department of Justice has thrown immense resources into cracking down connected illicit activities and recovering costs for taxpayers.

As a politicized nationalist conflict complete waste, fraud and maltreatment led by Republicans person targeted California and its Democratic leadership, Bonta and different authorities officials person moved swiftly to combat the claims.

In California, Bonta said, authorities person recovered about $2.7 cardinal done criminal and civilian prosecutions since 2016, including immoderate $740 cardinal done Medi-Cal fraud related prosecutions, about $2 cardinal nether the state’s False Claims Act, and an further $108 cardinal from a task unit focused connected rooting retired taxation fraud successful the underground economy.

State authorities person often collaborated pinch the national authorities successful the past connected specified investigations and invited a good-faith business successful the future, Bonta said.

CBS News reported connected the creation of a California-focused fraud task unit earlier this week, citing aggregate unnamed sources acquainted pinch the plans. The outlet, whose caller editor successful chief, Bari Weiss, has publically aligned herself pinch Trump and spearheaded a awesome overhaul of the news organization, reported that the president plans to soon motion an executive bid naming Vice President JD Vance arsenic caput of a group that would besides see the caput of the Federal Trade Commission arsenic vice chairman.

Trump’s rhetoric fueled doubts about California programs and Gov. Gavin Newsom’s activity astatine the commencement of the year, erstwhile he declared that “the fraud investigation of California [had] begun.”

On the president’s societal media platform, successful general letters and successful caller news conferences, officials successful the Trump management person alleged fraud successful kid care, hospice backing and unemployment benefits.

Last week, the taxable took halfway shape again erstwhile Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, posted a video accusing Armenian crime groups of carrying retired wide hospice fraud successful Los Angeles.

That viral video received much than 4.5 cardinal views connected X.

Oz’s video received fierce backlash from California politicians and the section Armenian community, who collectively alleged that it contained baseless and racially charged attacks connected Armenians.

The video shows Oz being driven about a conception of Van Nuys wherever he says that about $3.5-billion worthy of medicare fraud has been perpetrated by hospice and home-care businesses, claiming that “it’s run, rather a spot of it, by the Russian Armenian mafia.”

He besides points to Armenian connection signs, incorrectly referring to them arsenic written successful a cerulean script, and saying “you announcement that the lettering and connection down maine is of that dialect and it besides highlights the truth that this is an organized crime mafia deal.”

Newsom revenge a civilian authorities title against Oz connected Jan. 29, asking the Department of Health and Human Services to analyse the “racially charged and mendacious nationalist statements” made successful the video.

On Monday, California Sen. Adam Schiff followed suit, demanding an independent reappraisal of Oz’s alleged targeting of Armenian American communities.

“To propose markers of Armenian culture, language, and personality are suggestive of criminality underscores a discriminatory motive that could taint immoderate investigation into fraud and incite the further demonization of the community,” Schiff said successful a statement.

Glendale City Councilmember Ardy Kassakhian said successful an question and reply that Oz’s statements provender into the Trump administration’s playbook of utilizing allegations of fraud to sow group divisions.

“This clip the attraction conscionable happens to beryllium the Armenians,” he said. “In places for illustration Minnesota, it’s the Somali community.”

California has been investigating healthcare fraud since a 2020 Los Angeles Times investigation uncovered wide Medicare fraud successful the state’s booming but loosely regulated hospice industry.

From 2010 to 2020, the county’s hospices multiplied sixfold, accounting for much than half of the state’s about 1,200 Medicare-certified providers, according to a Times study of national healthcare data.

Scores of providers sprang up on a corridor stretching westbound from the San Gabriel Valley done the San Fernando Valley, which now has the highest attraction of hospices successful the nation.

The authorities Department of Justice has charged much than 100 group pinch hospice-related fraud since 2021 and shuttered about 280 hospices successful the past 2 years, according to information from the California Department of Public Health.

But those shuttered hospices hardly correspond a dent successful the monolithic hospice location healthcare industry. There are 468 hospice accommodation successful the Van Nuys area alone, according to the authorities database of aesculapian facilities.

There are 197 licensed aesculapian practices, including 89 licensed hospices, successful a azygous two-story building located astatine 14545 Friar St. successful Van Nuys — suggesting a attraction of fraudulent businesses.

When asked why the number of licensed aesculapian practices successful Van Nuys and astatine that reside are truthful high, a spokesperson for the California Department of Public Health said that the section is committed to fighting fraud and incapable to remark connected pending investigation.

Recent turmoil successful Minnesota has demonstrated the imaginable ripple effects of allegations levied by the Trump administration.

Ahead of sending successful thousands of migration enforcement agents into the Midwest state, Trump had many times cited a fraud lawsuit involving costs for a kid nutrition programme involving COVID-19 pandemic alleviation funds.

He utilized the case, which progressive a nonprofit wherever respective Somali Americans worked, to vilify the migrant community, moreover though the statement was tally by a achromatic woman. After the authorities became a lightning rod, Gov. Tim Walz dropped his reelection plans.

At Thursday’s news conference, Bonta described awesome cases successful different states, specified arsenic $11.4 cardinal healthcare fraud and ligament fraud conspiracy involving a nursing adjunct successful Florida and a $88.3 cardinal Medicaid fraud lawsuit successful in Ohio involving complete billing by a drugstore use head — to show maltreatment of authorities programs is not unsocial to California — aliases to bluish states.

“We cognize Vance hails from Ohio, truthful possibly he should return a look successful his ain backyard earlier starring an unnecessary governmental stunt focused connected California,” Bonta said. “We thought we should group the grounds straight.”

Times staff writers Melody Gutierrez and Dakota Smith contributed to this report.