WASHINGTON (TNND) \u2014 Federal and state investigators are pursuing new allegations of fraud in California and New York, prompting renewed scrutiny of how billions of taxpayer dollars have been spent through social service programs.<\/p>\n
In California, the Trump administration has suspended federal funding for a major Los Angeles homelessness program following allegations of financial mismanagement. (TNND)<\/p>\n<\/p>\n
The investigations are the latest focus of the Trump administration’s anti-fraud efforts, which officials say have already identified or acted on nearly $160 billion in suspected fraud and improper payments nationwide.<\/p>\n
In California, the Trump administration has suspended federal funding for a major Los Angeles homelessness program following allegations of financial mismanagement.<\/p>\n
The funding freeze targets the Los Angeles Homeless Services Authority, a key agency responsible for distributing homeless assistance funds throughout the region. Federal officials pointed to a 2024 audit that found significant gaps in financial documentation. According to the audit, of roughly $50.8 million in expenditures reviewed, only about $13.8 million could be fully accounted for.<\/p>\n
“We’re not gonna fund fraud,” U.S. Attorney for Los Angeles Bill Essayli said during an appearance on Fox & Friends.<\/p>\n
Essayli defended the administration’s decision, saying federal funding should only go to agencies that can demonstrate accountability and measurable results.<\/p>\n
“If they’re not being accountable for money they’re entrusted with, they’re not going to get another dollar,” Essayli said.<\/p>\n
Meanwhile, another California investigation is examining what officials say could be one of the largest fraudulent claims schemes in state history.<\/p>\n
Los Angeles County agreed to a settlement exceeding $4 billion to resolve more than 11,000 claims involving allegations of childhood sexual abuse at county-run facilities. But Los Angeles County District Attorney Nathan Hochman recently alleged in court filings that as many as 81% of the claims may be fraudulent.<\/p>\n
According to the filings, investigators uncovered evidence suggesting some individuals were recruited \u2014 and in certain cases paid \u2014 to submit claims. Hochman has asked a judge to pause settlement payouts for six months while authorities investigate the claims, attorneys and therapists involved in the cases.<\/p>\n
In New York, Sens. Tim Scott and Bill Cassidy have launched an investigation into the state’s unemployment insurance system.<\/p>\n
The senators allege New York may have improperly paid as much as $666 million in unemployment benefits and are seeking records from state officials.<\/p>\n
New York Gov. Kathy Hochul’s administration has rejected the allegations, calling the claim “patently false.”<\/p>\n
Scott, however, argues the issue reflects a broader pattern of fraud affecting public assistance programs across the country.<\/p>\n
The investigations in California and New York follow months of scrutiny surrounding alleged fraud in Minnesota social service programs and underscore a growing national debate over government oversight, accountability and the protection of taxpayer dollars.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (TNND) \u2014 Federal and state investigators are pursuing new allegations of fraud in California and New York,…\n","protected":false},"author":2,"featured_media":358339,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8],"class_list":["post-358395","post","type-post","status-publish","format-standard","has-post-thumbnail","category-california","tag-california","tag-california-headlines","tag-california-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/358395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=358395"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/358395\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/358339"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=358395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=358395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=358395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}