California has “a culture of fraud and abuse”.

February 7th, 2026

Publisher’s Note: Please share this Post with anyone who lives in California, especially with California’s many Facebook “communities”. In my opinion, without mass deportations, California is irretrievably broken and a failed “nation-state”. Gavin Newsom and many of California’s politicians, businesses and NGO’s have been thoroughly compromised by the CCP and other foreign agents. Please see Eric Swalwell for more details.

The rebellious golden state of California is approaching what Gavin Newsom calls a “nation-state”, but it’s becoming apparent that California will collapse into a morally bankrupt, fraud-ridden, “failed sanctuary state”, while an exodus of unemployed, formerly middle and working-class Americans continue to flee the state.

President Trump is not amused. As reported by the New York Post, Trump was on “X” blistering four fraud-riddled states and their governors; “Governor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker [of Illinois], and Kathy Hochul [of New York], have done, in my opinion, an even more dishonest and incompetent job,” raged the President of the United States.

Yet again, President Trump will incur the wrath of the Democrats in Gavin Newsom’s California. What Californians don’t realize is that when all the fraud is rooted out of the many institutionalized welfare scams, hospice care scams, healthcare scams, money laundering scams, and federal grant scams handed out like candy to colleges and universities, then every county and city in the state will have only one place to go for more money, and if you live in California, that would be you.

Democrat, Republican or Independent, you are toast.

The last refuge of a scoundrel is projection, and the ultimate display of what-aboutism comes from Attorney General Rob Bonta. He just made the weak, limp wristed point that both Florida and Ohio had some form of fraud that was somehow equivalent to California’s. The fraud he’s referring to in those states only measures in the millions. We’re talking about potentially hundreds of billions in the State of California.

Don’t Blame Trump, Californians Have Only Themselves to Blame

Let’s highlight just a few of the scandals that have become headlines in the past few months.

$24 billion spent on homelessness in five years, it’s only getting worse, 2 indicted, tip of the iceberg.

Cody Holmes, the former chief financial officer at a downtown Los Angeles-based developer of affordable housing, was arrested on a federal criminal complaint charging him with mail fraud. In a separate case, Steven Taylor is accused of defrauding lenders to aid his property-flipping business. He is charged with seven counts of bank fraud, one count of aggravated identity theft, and one count of money laundering.

The arrests come as part of a larger federal investigation into homelessness funding fraud in the Golden State. “Accountability begins today,” said acting U.S. Attorney Bill Essayli when he announced the arrests on Thursday. He said the two cases are part of a pattern of the larger misappropriation of billions in state funds meant to combat homelessness.

SBA suspends 111,620 California borrowers connected to $8.6 BILLION in suspected pandemic fraud.

“California, just like Minnesota, invites criminals to abuse the system with socialist welfare policies. Fraud scaled up massively during the pandemic – and the Biden Admin failed to stop it” said the Small Business Administration’s Kelly Loeffler. “We will pursue criminal referrals with the DOJ and fight to claw every dollar back.” Good luck with that.

Los Angeles hospice fraud reaches billions as Medicare providers scam federal system with fake companies.

“Hospice is crazy here,” says Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services. “You’ve got hospice that’s grown seven-fold in the last five years. They represent about three and a half billion dollars of fraud, we believe, just in LA County.”

Backing him up was California Attorney General Rob Bonta, who said last year, “Hospice fraud has become an epidemic in California, specifically in the greater Los Angeles area.”

Trump Says California is Full of Fraud, Bonta Says Trump’s Claims are Reckless

Wait a minute. Trump’s claims are reckless? Didn’t AG Bonta just tell us that Hospice fraud is an epidemic in California?

California Attorney General Rob Bonta strongly rejected President Donald Trump’s allegations of widespread fraud in the state during a press conference in Los Angeles on Thursday. “The Trump administration’s claims that state programs are overrun by fraud and that its government was itself perpetrating or facilitating this fraud is outrageous and ridiculous and without basis,” Bonta declared at the Ronald Reagan State Building.

It’s this kind of denialism that is killing the state. And we all know it’s not rhetoric or politically motivated. Right?

California officials argue the fraud allegations are politically motivated. Bonta highlighted similar cases in Republican-led states, including an $11.4 million healthcare fraud conspiracy in Florida and an $88.3 million Medicaid fraud case in Ohio.

“We know Vance hails from Ohio, so maybe he should take a look in his own backyard before leading an unnecessary political stunt focused on California,” Bonta said.

Classic whatabout-ism and pure projection.

California Refugees Are Not Welcome in Arizona

“After having lived in California the past four years, I can attest to the near-insanity of progressive politics in this state, yet California’s very progressive governor, Gavin Newsom, is considered a front-runner for the Democratic Party’s nomination for president in 2028.” – William Andersen

Aside from the fact that Arizona is inundated by Californians with deep pockets buying up real estate with cash and driving up home prices, many long-time Arizonan’s don’t welcome them or trust them, and why should they? Angelinos should be warned that the first thing they should do when moving to the state is to change their license plates and lay low for a while, and don’t display your politics under any circumstances.

The Idiocracy That Is California Politics – Authored by William Andersen via The Mises Institute,

“Progressivism is a utopian philosophy of governance that will never find nor create its utopia. If California voters and politicians do not understand the current crisis and how it came about, they probably never will understand. Instead, we will see the continuous march to perdition as California politicians refuse to acknowledge that they are killing the geese laying the golden eggs.” – William Anderson

Back in the seventies, California was a great place to live and start a family and a small business. By the 80’s, a crowd of self-entitled white feminists, assorted dropouts from the Vietnam anti-war protests, hippies with PhD’s and drugged-out leftists on LSD began their march into the halls of academia and state governance, and progressivism was born. And then came the illegals, La Raza and “Reconquista”.

Today, progressive boomer bureaucrats are retired and living comfortably smug off their ill-gotten and underfunded CalPERS gains in states like Arizona and income-tax-free Nevada.

We’ll be pointing out the latest news from California and Arizona on a regular basis here at Roadrunner395.com, and much of the news will be about California’s never-ending cycle of institutional fraud, theft and looting from taxpayers. Have you guessed that the publisher of this news-blog is a native Californian and also an old-timer with a 30-year business resume in Arizona. Trust that Miguel knows what he’s talking about. So does William Anderson of The Mises Institute, and he’s only been there for four years.

President Trump Announces California Fraud Task Force.

CBS News reported on the creation of a California-focused fraud task force earlier this week, citing multiple unnamed sources familiar with the plans. 

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter!” Trump declared in a signed Truth Social post, using his preferred name for Golden State Democratic Gov. Gavin Newsom.

By now, it should be painfully obvious that California should be put in a box and buried out in the Mojave Desert. Thank you, President Trump.

On Monday, The Post reported that the Trump administration was cutting off $10 billion in social services and childcare funding to California, Colorado, Illinois, Minnesota, and New York in the aftermath of the growing fraud scandal in the Land of 10,000 Lakes.  

Finally, Steve Hilton, a candidate for governor in California, has created a whistleblower hotline for state employees to call in order to report fraud. We doubt that will work but you never know. Not everyone in the state is a crook.

CALIFORNIA WHISTLEBLOWERS: HELP US STOP CALIFRAUD

State workers see the failures in California’s government long before anyone else. Many have tried to raise concerns through the proper channels, but those warnings are often ignored or pushed aside. Taxpayers end up paying the price.

It’s hard to fathom how an entire population becomes so accustomed to fraud as a standard of practice in virtually every corner of government spending programs, but we shouldn’t be surprised when social service organizations, higher education and private small businesses are all feeding at the government trough.

A Staggering Culture of Fraud

In a press release, SBA Administrator Kelly Loeffler noted, “Once again, the Trump SBA is taking decisive action to deliver accountability in a state whose unaccountable welfare policies have created a culture of fraud and abuse at the expense of law-abiding taxpayers and small business owners.”

You should all be throwing up by now.

The end.