California's Fraud Explosion Dwarfs Minnesota's Taxpayer Scandal

The billion-dollar fraud debacle in Minnesota that ended Governor Tim Walz’s political career represents only a fraction of the widespread theft plaguing American taxpayers, a conservative activist warned during a podcast interview released this week.

Yet the problem in California under Governor Gavin Newsom is vastly larger, operating on a completely different magnitude that renders Minnesota’s scheme almost trivial by comparison.

During his appearance on the “Pod Force One” podcast with New York Post columnist Miranda Devine, the activist described the Golden State’s situation as “another level entirely,” noting that it makes Minnesota’s fraud look like child’s play.

While Minnesota’s losses were concentrated largely within the state’s Somali community, California’s lax oversight has turned the state into an open invitation for scammers from every background, nationality, and region of the country.

“Individuals from all walks of life, all nationalities, even all parts of the country have recognized that the California government is essentially open to business for fraud schemes,” he explained. He also pointed to an ethnic dimension, highlighting groups such as Armenians in Southern California who appear to be carrying out fraud on a massive scale. One police detective he consulted repeatedly identified Romanians, Armenians, and Nigerians as populations frequently caught defrauding state programs.

The activist has built a reputation for exposing government waste and abuse. In 2023 he revealed alleged Medicaid fraud at a Texas children’s hospital tied to gender-transition procedures, prompting a state investigation and eventual settlement. Last year he released Los Angeles Fire Department documents showing how diversity, equity, and inclusion priorities had sidelined critical disaster-recovery efforts after devastating wildfires. Earlier this month he co-authored a report detailing how California spent $189 million on tablets for prisoners—devices inmates use to access pornography, engage in explicit conversations, and in some cases groom minors, despite the state’s claims of content controls.

In the podcast he portrayed California as a “big fat target” for criminals during Newsom’s tenure. Insiders told him the state offers the perfect storm: perpetrators are unlikely to be caught, even less likely to face charges, and almost certain to avoid meaningful punishment if convicted.

“It’s a means, motive and opportunity,” he said. “It’s a classic story of criminal conduct, and that’s why you see it happening in California at such scale.”

Newsom is term-limited and cannot seek another term as governor when his current one ends in 2027. He is already seen as a leading contender for the Democratic presidential nomination in 2028. If the activist’s warnings gain traction, the stark contrast with the Minnesota scandal could create serious headaches for any national ambitions.